Fuzzy Environment of Inventory Optimization Technique

The optimization of inventory EOQ concept was developed to calculate replenishment order size for a single item inventory system without space constraints. The basic inventory EOQ model determines the order quantity considering the trade-off between order cost and inventory cost. It deals with the fundamental concepts and a brief historical note on the fuzzy inventory model. It deals with the annual integrated total cost for both the vendor and the buyer and the total cost of the integrated two-stage inventory system for the relationship of vendor-buyer. It explains an inventory model with Taguchi¿s cost of poor quality and on the boundaries of the fill rate in a fuzzy situation by employing the signed distance method which is triangular. It deals with the impact of stochastic lead-time reduction on inventory cost under order crossover by using Yager¿s method. It discusses a sequential optimization method by using Kuhn-Tucker conditions with a variable number of vendors and quality discounts and permissible delays in payments.