Optimal solution for a single period inventory model with fuzzy cost and demand as a fuzzy random variable

Abstract

This paper presents the optimization of a single period inventory problem(SPIP) in particular a multi-item newsboy problem, where both fuzziness and randomness occur. Due to lack of data, the demand is subjectively determined. So demand is considered as a fuzzy random variable and the purchasing cost as a fuzzy number. The optimum order quantity and the expected profit have been obtained by using Buckley's concept of minimization of fuzzy numbers. The technique developed to transform a fuzzy single period inventory model into a crisp model and has been subjected to numerical verification.