A METHOD FOR SOLVING FUZZY INVENTORY WITH SHORTAGE UNDER THE SPACE AND INVESTMENT CONSTRAINTS

This paper discusses an Economic Order Quantity (EOQ) model with shortage under the space, investment constraints, where the setup cost, the holding cost, price per unit, the shortage cost, demand, storage area and the investment amount are considered as triangular fuzzy numbers. The fuzzy parameters in the constraints are then transformed into crisp using Robust’s ranking technique. The fuzzy parameters in the objective function are then transformed into corresponding interval numbers. Minimization of the interval objective function (obtained by using interval parameters) has been transformed into a classical multi-objective EOQ problem. The order relation that represents the decision maker’s preference among the interval objective function has been defined by the right limit, left limit, and center which is the half –width of an interval. This concept is used to minimize the interval objective function. The problem has been solved by fuzzy programming technique. Finally, the proposed method is illustrated with a numerical example.