A Fuzzy Inventory Model Considering Imperfect Quality Items with Receiving Reparative Batch and Order

Abstract

This paper presents an inventory model for imperfect quality items with receiving a reparative batch and order overlapping in a fuzzy environment by employing fuzzy triangular numbers. It is assumed that the imperfect items identified by Screening are divided into either scrap or reworkable items. The reworkable items are kept in store until the next items are received. Afterward, the items are returned to the supplier to be reworked. Also, a discount on the purchasing cost is employed as an offer of cooperation from a supplier to a buyer to compensate for all additional holding costs incurred to the buyer. The rework process is error-free. An overlapping order scheme is employed so that the vendor is allowed to use the previous shipment to meet the demand by the inspection period. In the fuzzy model, the graded mean integration method is taken to defuzzify the model and determine its approximation of a profit function and optimal policy. In doing so, numerical examples are rendered to represent the model behavior, and, eventually, the sensitivity analysis is presented.

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