A Continuous Review Production-Inventory System with a Variable Preparation Time in a Fuzzy Random Environment Article Swipe

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Amalendu Singha Mahapatra , Hardik N. Soni , Maheswar Singha Mahapatra , Biswajit Sarkar , Sanat Kumar Majumder ·

YOU? · · 2021 · Open Access · · DOI: https://doi.org/10.3390/math9070747

With the increase in the varieties products and the increasing uncertainty about product demand, the production preparation time is a significant factor in addressing these issues. The trade-off between the reduction of the production preparation time and the associated cost remains a critical decision. With this backdrop, this study presents a continuous review production-inventory model with a variable production preparation time and a time-dependent setup cost. The demand during the preparation time is captured through a min-max distribution-free approach. In a stochastic framework, the order quantity, reorder point, and setup time are optimized by minimizing the expected cost considering the time-value effect. Further, a fuzzy model is formulated to tackle the imprecise nature of the production setup time and demand. Two algorithms are developed using an analytical approach to obtain the optimal solution. A numerical illustration is given to present the key insights of the model for effective inventory management. It is observed that order quantity and total cost are more sensitive at the lower side of the optimal setup time rather than at the higher side. The discount rate is also found to be a sensitive factor while minimizing the total expected cost.

Related Topics

Production (Economics)

Computer Science

Mathematics

Operations Management

Mathematical Analysis

Macroeconomics

Artificial Intelligence

Microeconomics

Law

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Production (economics) Lead time Fuzzy logic Reorder point Computer science Mathematical optimization Variable (mathematics) Total cost Reduction (mathematics) Economic order quantity Point (geometry) Random variable Operations research Mathematics Operations management Economics Supply chain Statistics Political science Geometry Mathematical analysis Macroeconomics Artificial intelligence Microeconomics Law

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Type: review
Language: en
Landing Page: https://doi.org/10.3390/math9070747
PDF: https://www.mdpi.com/2227-7390/9/7/747/pdf?version=1617938618
OA Status: gold
Cited By: 40
References: 59
Related Works: 10
OpenAlex ID: https://openalex.org/W3148994534

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DOI: https://doi.org/10.3390/math9070747

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Title: A Continuous Review Production-Inventory System with a Variable Preparation Time in a Fuzzy Random Environment

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Type: review

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Language: en

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Publication year: 2021

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Publication date: 2021-03-31

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Authors: Amalendu Singha Mahapatra, Hardik N. Soni, Maheswar Singha Mahapatra, Biswajit Sarkar, Sanat Kumar Majumder

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Landing page: https://doi.org/10.3390/math9070747

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Concepts: Production (economics), Lead time, Fuzzy logic, Reorder point, Computer science, Mathematical optimization, Variable (mathematics), Total cost, Reduction (mathematics), Economic order quantity, Point (geometry), Random variable, Operations research, Mathematics, Operations management, Economics, Supply chain, Statistics, Political science, Geometry, Mathematical analysis, Macroeconomics, Artificial intelligence, Microeconomics, Law

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Cited by: 40

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Citations by year (recent): 2024: 6, 2023: 5, 2022: 26, 2021: 3

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Related works (count): 10

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