An new approach for newsboy problem with fuzzy demand

Abstract

A sufficient condition that the expected value of function of fuzzy variable can be expressed as Lebesgue-Stieltjes integral is given via the credibility measure of fuzzy event. Based on the proposed sufficient condition, the expected sales, inventory and shortage amounts are derived. Therefore, the expected profit is established, its concavity is revealed. The optimal order condition is obtained. The special optimal order quantity conditions associated with various types of fuzzy demand are deduced. Finally, a numerical example is given to illustrate the order quantity conditions.