Two-storage inventory model with lot-size dependent fuzzy lead-time under possibility constraints via genetic algorithm

Multi-item inventory models with stock dependent demand and two storage facilities are developed in a fuzzy environment where processing time of each unit is fuzzy and the processing time of a lot is correlated with its size. These are order-quantity reorder-point models with back-ordering if required. Here possibility and crisp constraints on investment and capacity of the small storehouse respectively are considered. The models are formulated as fuzzy chance constrained programming problem and it is solved via generalized reduced gradient technique when crisp equivalent of the constraints is available. A genetic algorithm is developed based on fuzzy simulation and entropy where region of search space gradually decreases to a small neighborhood of the optima and it is used to solve the models whenever the equivalent crisp form of the constraint is not available.