The Effect of Volume Discounts in the Economic Order Quantity Model Using Fuzzy Approach

Production Programming and Inventory Control are known as most important topics in manufacturing companies subordinated the uncertainty and risk. This uncertainty increases the system costs while economic order quantity (EOQ) gives direct benefit to the organization. In this research a new inventory control model will be devised due to the volume discount and under fuzzy approach. To calculate the optimal parameters¡ we used presolving de-fuzzification for all entrance parameters and pro-solving defuzzification for all output parameters based on torques method in parameters certainty. Meanwhile¡ converting de-fuzzification models to classical models and replacing de-fuzzy digits finally led to calculate the suggestive parameters. To better illustrate the model sensitivity¡ we used a case study. The result showed this heuristic approach would analytically examine the model and determine optimal parameters quantity for each level and each optimal level could be selected depends on the organization policies.