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An order level inventory model under two level storage system with fuzzy demand

Deterministic inventory model with two levels of storage has been studied by numerous authors. In this paper we developed a fuzzy inventory model with two ware houses (one is the existing storage known as own warehouse (OW) and the other is hired on rental basis known as rented warehouse (RW). The model allows constant levels of item deterioration in both houses. | Yugoslav Journal of Operations Research 23 (2013) Number 2, 249-261 DOI: 10.2298/YJOR130111020S AN ORDER LEVEL INVENTORY MODEL UNDER TWO LEVEL STORAGE SYSTEM WITH FUZZY DEMAND Sanchita SAKRAR Tripti CHAKRABARTI University of Calcutta Department of Applied Mathematics 92,APC Road, Kolkata-700009,India sanchita771@rediffmail.com triptichakrabarti@gmail.com Received: January 2013 / Аccepted: April 2013 Abstract: Deterministic inventory model with two levels of storage has been studied by numerous authors. In this paper we developed a fuzzy inventory model with two ware houses (one is the existing storage known as own warehouse (OW) and the other is hired on rental basis known as rented warehouse (RW). The model allows constant levels of item deterioration in both houses. The stock is transferred from RW to OW in continuous release pattern and the associated transportation cost is taken into account. To make the model more realistic in nature, fuzzy demand has been considered. Using α-cut for defuzzification, the total variable cost per unit time is derived. Therefore, the problem is reduced to crisp annual costs. The multi-objective model is solved by Global Criteria Method supported by GRG(Generalized Reduced Gradient) Technique, which is illustrated by a numerical example. Keywords: Fuzzy demand, deterioration, defuzzification, warehouse MSC: 90B05. 1. INTRODUCTION The warehouse storage capacity is defined as the amount of storage space needed to accommodate the materials to be stored to meet a desired service level which specifies the degree of storage space availability. Assumption that stock items are delivered exactly when needed is impractical. Therefore, it is important to investigate the 250 S. Sakrar, T. Chakrabarti / An Order Level Inventory Model influence of warehouse capacity in various inventory policy problems. In recent years, various researchers have discussed the problem of two warehouse inventory system. This kind of system was first .