A fuzzy leakage inventory model with shortage using triangular and trapezoidal fuzzy numbers

Abstract

Inventory refers to any kind of economically valued resources that are in various stages of being made ready for sale. With the development of the Economic Order Quantity (EOQ) model by Ford Harris, many models under different conditions and assumptions are proposed. Leakage is a common phenomenon whose occurrence will reduce the profitability of the firm by increasing the minimum operational cost. In majority of real-life inventory problems we face many uncertainties in the key parameters of the corresponding model. These impreciseness and uncertainties in crisp model are improved by using fuzzy set theory. So, in this context, a fuzzy leakage inventory order level is developed by taking holding cost and shortage cost as Triangular as well as Trapezoidal Fuzzy Numbers. Defuzzification is done using Signed Distance Method. A relevant numerical example is illustrated along with sensitivity analysis to justify the proposed notion that the optimal values are improved in fuzzy environment as compared to that of in crisp environment.