Interactive Inventory Model under Permissible Delay and Imprecision

• Main Authors: P.K. Tripathy, Sujata Sukla
• Format: Article
• Language: English
• Published: Operations research society of Taiwan 2020-06-01
• Series: International Journal of Operations Research
• Online Access: http://www.orstw.org.tw/ijor/6_volume17_no2.html

Current study develops a trade credit system between supplier and buyer where demand is assumed to be time dependent and deterioration follows weibull distribution. Shortages are allowed and excess demand is backlogged. The parameters involved in the supply chain system may likely to be varied due to the changing business environment. Therefore, it will be more realistic and market friendly to deal with fuzzy model rather than crisp model. Here the optimal solution is attained for different periods of permissible delay as furnished by the seller to the buyer. Sensitivity analysis is incorporated to investigate the effect of different system parameters in enhancing the profit. The study can make the supply chain strategy of the company more robust by making the most sense through stock prediction and its selection so as to ensure that any disruption in the supply chain would not bring the company to a grinding halt.