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A single period inventory model with a truncated normally distributed fuzzy random variable demand. (English) Zbl 1258.93017
Summary: In this article, a single period inventory model is considered in the mixed fuzzy random environment by assuming the annual customer demand to be a fuzzy random variable. Since assuming demand to be normally distributed implies that some amount of demand information is being automatically taken to be negative, the model is developed for two cases, using the non-truncated and the truncated normal distributions. The problem is able to represent scenarios where the aim of the decision-maker is to determine the optimal order quantity such that the expected profit is greater than or equal to a predetermined target. This ’greater than or equal to’ inequality is modeled as a fuzzy inequality. The methodology developed in the paper is illustrated by a numerical example.
93A30Mathematical modelling of systems
90B05Inventory, storage, reservoirs
93E03General theory of stochastic systems
93C42Fuzzy control systems