Inventory Optimization by Fuzzy Logic for Deteriorating Items in sea food exports companies with Shortages under Fully Backlogged Conditions

Here, a fuzzy inventory model for deteriorating items with shortages under fully backlogged condition is formulated and solved. Deterioration rate and demand are assumed to be constant. Shortages are allowed and assumed to be fully backlogged. Fuzziness is introduced by allowing the cost components, demand rate and the deterioration. In fuzzy environment, all related inventory parameters are assumed to be trapezoidal fuzzy numbers. The purpose of this method is to minimize the total cost function in fuzzy environment. Fuzzy method is used to solve data collected from a company. The convexity of the cost function is shown graphically. Sensitivity analysis is also carried out to detect the most sensitive parameters of the system. From sensitivity analysis, we show that the total cost function is extremely influenced by the holding cost, demand rate and the shortage cost.