Development of a production inventory model with fuzzy random demand and inventory cost with reliability considerations

Abstract

This thesis addresses a production inventory model to maximize the expected average profit considering fuzzines' of random demand and inventory holding cost along with reliability of the production process. The classical inventory control models a,sume thm products are produced by perfectly reliable production pwces, with a fixed set-up cost. While the reliabil ity of the production proccs; cannol he increased \\,i(hout a price, its selup cost can be reduced with investmcPI in flexibility and reliability improvement. In thi~ thesis, a production inventory model with reliability of production process consideration is developed in an imprecise and uncertain mixed fuzlY environment. The goal of this thesis is to introduce demand and inventory holding cost as a fuzzy random variable in an imperfect production process. Hcrc. set.up cost and reliability of the production proce~~ along with production period arc decision var;ables and expected average profit is the objective function which is to be maximized. Expected average profit 01.the model is a -fuzzy quantity due to fuzzy-randomne<;s of the demand and inventory holding cost and its graded mean integration value (GM!V) is optimized using unconstraint signomlal geometric progr ••mmlng to determine optimal deci~i()n for thc decision maker. i\ numerical example has been presented to explain thc model.