Application of fuzzy approach to inventory control (Economics Order Quantity)
Although all managers seek to maximize the utility, most firms do not recognize the importance of inventory control and the use of warehouse inventory control systems as a management tool. On the other hand, in classical inventory control models, the parameters have to be determined, while in real world problems the parameters are mostly uncertain. Therefore, the models partially ignore the facts and as a result managers are reluctant to apply this kind of models. So, the present study seeks to answer the question of whether fuzzy inventory control models can overcome this defect, introduce parameters into the model more realistically and thus reduce total inventory cost and improve performance. In this paper, a model of fuzzy Economics Order Quantity (EOQ) was presented and evaluated with a numerical example. The findings confirmed the positive response to the above questions. Key words: Inventory Control Models, Economics Order Quantity, warehousing cost, ordering cost, fuzzy
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