Article ID: | iaor20104330 |
Volume: | 8 |
Issue: | 2 |
Start Page Number: | 230 |
End Page Number: | 246 |
Publication Date: | May 2010 |
Journal: | International Journal of Operational Research |
Authors: | Dutta Pankaj |
Keywords: | newsboy problem, fuzzy modelling |
This article provides a fuzzy inventory model for multi-product newsboy problem subject to a storage space constraint. Common characteristics of inventory systems include uncertain demand. Several authors have examined constrained multi-item newsboy problem with stochastic demand. In this paper, a model for cases of fuzzy demands is constructed. The objective is to maximise the total resultant profit by considering fuzzy demands together with a storage space constraint. The optimisation is achieved using interval-valued expectation of a fuzzy number. Based on the bisection method, an efficient iterative algorithm is adopted to identify the optimal order quantities. The optimality conditions are justified through a numerical example.