Affiliations: Department of mathematics, Institute of Technical Education and Research, Siksha'O'Anusandhan University, Khandagiri Square, Bhubaneswar, OR, India
Note: [] Corresponding author. J.K. Dash, Department of mathematics, Institute of Technical Education and Research, Siksha'O'Anusandhan University, Khandagiri Square, Bhubaneswar, OR, India. Tel.: +91 9861174553; Fax: +91 674 2351880/2351217; E-mail: [email protected]
Abstract: This paper presents the optimization of a single period inventory problem(SPIP) in particular a multi-item newsboy problem, where both fuzziness and randomness occur. Due to lack of data, the demand is subjectively determined. So demand is considered as a fuzzy random variable and the purchasing cost as a fuzzy number. The optimum order quantity and the expected profit have been obtained by using Buckley's concept of minimization of fuzzy numbers. The technique developed to transform a fuzzy single period inventory model into a crisp model and has been subjected to numerical verification.
Keywords: Single period inventory model, optimal order quantity, fuzzy programming technique
