A Fuzzy Non-Linear Programming Economic Order Quantity Model with Demand Dependent Unit Cost of Production under Two Constraints

A fuzzy NLP EOQ model is developed with demand dependent unit cost of production and dynamic setup cost under limited capital investment and limited storage capacity. Here fuzziness is introduced in objective function, capital system and storage area. It is solved by fuzzy non-linear technique for linear membership functions. This paper allows the modification of the Single item EOQ model in presence of fuzzy decision making process for demand dependent unit cost of production in the presence of imprecisely estimated parameters. The model is developed for the problem by employing different modeling approaches over an infinite planning horizon. It incorporates all concepts of a fuzzy arithmetic approach, the quantity ordered and the demand per unit compares both fuzzy non linear and other models. Computational algorithm using the LINGO 13.0 version software is developed to find the optimal solution and the diagrammatical representations can be obtained by MATLAB 7.8.0. (R2009a) version software. Investigation of the properties of an optimal solution allows developing an algorithm whose validity is illustrated through an example problem. Sensitivity analysis of the optimal solution is also studied with respect to changes in different parameter values and to draw managerial insights. By a comparative study of a numerical example, it demonstrates the efficiency of the available formulae in the literature to highlight the optimality of the solution technique satisfying two constraints.