Volume 2 Issue 2 pp. 385-394 Spring, 2011


A single period inventory model for incorporating two-ordering opportunities under imprecise demand information


G. C. Mahata


The ordering strategy for a single period inventory model is the key to achieve success in the competitive business environment. This article considers demand in a form of fuzzy number and discusses the SPIM in which the retailer has the opportunity to reorder once during the period. The entire period/season is divided into two slots and the reorder is to be made during the mid-season after the early-season demand has been observed. The objective is to find the expected optimal order quantity together with profit maximization. We illustrate the implementation of the proposed model using a numerical example and explain that the explicit consideration of this reordering opportunity could lead us to better results in terms of profitability.


DOI: 10.5267/j.ijiec.2010.08.002

Keywords: Single-period inventory, Fuzzy demand, Reordering strategy, Profit maximization
References

Bector, R. C., & Chandra, S. (2005). Fuzzy mathematical programming and fuzzy matrix games. New York: Springer.

Carlsson, C. & Fuller, R. (2001). On possibilistic mean value and variance of fuzzy numbers. Fuzzy Sets and Systems, 122, 315-326.

Chung, C. S. & Flynn, J. (2001). A newsboy problem with reactive production. Computers and Operations Research, 28, 751-765.

Dubois, D. & Prade, H. (1987), The mean value of a fuzzy number. Fuzzy Sets and Systems, 24, 279-300.

Dutta, P., Chakraborty, D. & Roy, A.R. (2007). An inventory model for single period products with reordering strategy under fuzzy demand. Computers and Mathematics with Applications, 53, 1502-1517.

Hadley, G. & Whiten, T.M. (1963). Analysis of Inventory Systems, Prentice-Hall, Englewood Cliffs, NJ.

Khouja, M. (1999). The single-period (news-vender) inventory problem: a literature review and suggestions for future research. Omega, 27, 537-553.

Liou, T.-S. & Wang, M.-J. (1992). Ranking fuzzy numbers with integral value. Fuzzy Sets and Systems, 50, 247–255.

Lau, H. S. & Lau, A. H. L. (1997). Reordering strategies for a newsboy-type product. European Journal of Operational Research, 103, 557-572.

Lau, A. H. L. & Lau, H. S. (1998). Decision models for single-period products with two ordering opportunities. International Journal of Production Economics, 55, 57-70.

Luhandjula, M.K. (2004). Fuzzy random variable: A mathematical tool for combining randomness and fuzziness, The Journal of Fuzzy Mathematics, 12, 755-764.

Puri, M.L. & Ralescu, D.A. (1986). Fuzzy Random Variables. Journal of Mathematical Analysis and Applications, 114, 409-422.