Article ID: | iaor20171562 |
Volume: | 24 |
Issue: | 5 |
Start Page Number: | 1197 |
End Page Number: | 1227 |
Publication Date: | Sep 2017 |
Journal: | International Transactions in Operational Research |
Authors: | Sarkar Biswajit, Mahapatra Amalendu Singha |
Keywords: | simulation, demand, combinatorial optimization |
This paper investigates a periodic review fuzzy inventory model with lead time, reorder point, and cycle length as decision variables. The main goal of this study is to minimize the expected total annual cost by simultaneously optimizing cycle length, reorder point, and lead time for the whole system based on fuzzy demand. Two models are considered in this paper: one with normal demand distribution and another with a distribution‐free approach. The model assumes a logarithmic investment function for lost‐sale rate reduction. Furthermore, two separate efficient computational algorithms are explained to obtain the optimal solution. Some numerical examples are given to illustrate the model.