Fuzzy Production Inventory Model considering Imperfect Quality and Shortage: A Case Study in a Goat Milk SMEs

Goat milk powder is one of the perishable processed products. The decreasing quality goat can cause financial losses to company if not regulated properly. So far, also faced with problem consumer demand uncertainty. When for powdered goat's high, experiences stockout but be overcome by backorder. low, there will overstock. Overstock conditions, in addition causing high holding costs, are at risk product degradation or expiration. In this study, an inventory model was developed that considers uncertainty demand, quality, and backorder determine optimal production quantity so total cost incurred minimum. basic used economic quantity. Uncertainty percentage products declining approached using a triangular fuzzy. While defuzzification technique signed distance.