Fuzzy economic order quantity model with imperfect quality and service level

Abstract

This article considers the economic order quantity problem with imperfect items and service level constraint. We fuzzify the defective rate and annual demand to be the LR-fuzzy numbers and obtain the fuzzy total profit per unit time. The optimal order policy is determined using simple algebraic method and signed distance to maximize fuzzy total profit per unit time. Then, an algorithm which combined customer service level with optimal result obtained only from the aspect of maximize profit is provided to find the optimal order quantity in the fuzzy sense so that the required service level is attained and the total profit per unit time in the fuzzy sense has a maximize value. Furthermore, numerical examples are provided to illustrate the results of proposed model.