Fuzzy models for the newsboy problem

This paper presents two fuzzy models for the newsboy problem in an uncertain environment. It is assumed that uncertainties may appear in demand and in inventory costs. Fuzzy demand is used to describe a subjective estimate, linguistically expressed by the phrase ‘demand is about d’. Also, fuzzy demand could be derived from evidence about demand recorded in the past. Imprecise inventory costs, such as overage and shortage costs, are represented by fuzzy sets, too. The quantity that should be ordered for a fixed time period minimizes the possible total cost. The computational aspects of the fuzzy models and their interpretations are illustrated by examples.