A fuzzy random periodic review system with variable lead-time and
negative exponential crashing cost
APPLIED MATHEMATICAL MODELLING, 36 (12):
6312-6322 (December 2012)DOI: {10.1016/j.apm.2011.09.047}
Abstract
In the present model a fuzzy random periodic review system has been
investigated with the annual demand assumed to be a discrete fuzzy
random variable with associated imprecise probabilities. Keeping in mind
the widespread application of the Just-In-Time manufacturing philosophy
and lead-time management being one of its most effective methods of
implementation, the lead-time has been assumed to be an added control
parameter. Also as it may not be always possible to resolve the
lead-time into all its components and estimate their individual crashing
costs, the crashing cost has been introduced as a negative exponential
function of the lead-time. A methodology has been developed in this
regard such that the total inventory cost is minimized and the optimal
period of review, the optimal target inventory level and the optimal
lead-time are determined in the process. An algorithm has been provided
to encapsulate the methodology and it has been illustrated by way of a
numerical example. (C) 2011 Elsevier Inc. All rights reserved.