Optimization in Fuzzy Economic Order Quantity Model Involving Pentagonal Fuzzy Parameter

In the classical EOQ model, acquiring cost of an order would be usually paid while receiving its receipt. Sometimes, the supplier may offer the retailer to pay the entire amount or the fraction of acquiring cost in advance as equal number of payments. The present research discusses the EOQ model with substandard products under fuzzy situation. This model deals with the advance payment on acquiring cost, products with substandard quality, and misclassification errors under repair option without scarcity by providing two models. The first model hypothesizes a remittance situation where the advance payment should be paid before the cycle time with some rate of interest which incurred by the supplier while the second model scrutinizes a situation where the prepayment occurs during the time length of the prior cycle which leads the supplier who would offer some price rebate on prepaid quantities. The proportion of improper items and the two kinds of screening errors are considered as the pentagonal fuzzy numbers [PFNs]. A fuzzy EOQ is framed for analyzing the sample, which can obtain the optimal solution. The impact of fuzziness on fraction of substandard products and investigation errors are illustrated for two models with appropriate examples.

Automated summary

This study discusses the use of the EOQ model to handle situations with substandard products, advance payment on acquiring cost, and misclassification errors under repair options in a fuzzy environment. Two models are presented, with the first model involving advance payments and the second model involving price rebates on prepaid quantities. The study considers the proportion of substandard products and errors in misclassification as pentagonal fuzzy numbers.