A Partial Backlogging Inventory Model for Deteriorating Item under Fuzzy Inflation and Discounting over Random Planning Horizon: A Fuzzy Genetic Algorithm Approach
An inventory model for deteriorating item is considered in a random planning horizon under inflation and time value money. The model is described in two different environments: random and fuzzy random. The proposed model allows stock-dependent consumption rate and shortages with partial backlogging. In the fuzzy stochastic model, possibility chance constraints are used for defuzzification of imprecise expected total profit. Finally, genetic algorithm (GA) and fuzzy simulation-based genetic algorithm (FSGA) are used to make decisions for the above inventory models. The models are illustrated with some numerical data. Sensitivity analysis on expected profit function is also presented. Scope and Purpose. The traditional inventory model considers the ideal case in which depletion of inventory is caused by a constant demand rate. However, to keep sales higher, the inventory level would need to remain high. Of course, this would also result in higher holding or procurement cost. Also, in many real situations, during a longer-shortage period some of the customers may refuse the management. For instance, for fashionable commodities and high-tech products with short product life cycle, the willingness for a customer to wait for backlogging is diminishing with the length of the waiting time. Most of the classical inventory models did not take into account the effects of inflation and time value of money. But in the past, the economic situation of most of the countries has changed to such an extent due to large-scale inflation and consequent sharp decline in the purchasing power of money. So, it has not been possible to ignore the effects of inflation and time value of money any more. The purpose of this paper is to maximize the expected profit in the random planning horizon. 1. Introduction In the past few decades, many researches have studied an inventory model with constant demand or dynamic demand (cf. M. K. Maiti and M. Maiti [1], Taleizadeh et al. [2], Jana et al. [3], and others). Moreover, in a competitive situation attractive display of units in the showroom is an important factor. Levin et al. [4] noted that at times the presence of inventory has a motivational effect on the people around it. It is a common belief that large piles of goods displayed in a supermarket will lead the customer to buy more. Thus, many business people use showrooms and the attractive display of units in the showroom to influence the customers. Roy et al. [5] and Maiti [6] have developed an inventory model with stock-dependent demand. In most of the earlier inventory models,
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