Fuzzy logic for estimating replacement items in inventory management

Abstract

The aim of this paper is to show how the use of a fuzzy logic system associated to the amount estimation of items in stock can reduce the required amount of spare items of a purchase order, making it possible to determine with greater precision the minimum purchase lot for an order and so minimizing storage costs. Keeping lower the average stock levels without causing shortages and further decrease in service levels, companies can ensure free capital for investments in other strategic areas and have fewer losses in the case of perishable products unnecessarily stored for long periods.