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Optimization of an EPQ model in an imprecise environment with defuzzification by the centroid method under inflation

Arora Ritu, Chauhan Anand, Sharma Renu, Singh Anubhav Pratap

Operations Research and Decisions

2022

Vol. 32, No. 3

32--48

The awareness of making decisions in an imprecise environment has resulted in considering the inventory system under a fuzzy approach. The effects of uncertain demand have been finding increased application in many inventory systems. Uncertainty creates complicated situations for the manufacturer in making decisions. Markets have become more competitive as a result of technological advancements. The effect of inflation on the overall cost of the inventory system is useful in providing a tool for the analysis of inventory decisions. This study intended to estimate the effect of different fuzzy numbers on a manufacturer's annual joint expected total cost. The comparative study of this proposed model has been considered for two different fuzzy numbers with the defuzzification technique as the centroid method. The optimization technique has been used to minimize the producer’s joint expected total cost under the condition mentioned earlier, and the model is validated numerically.