Fuzzy models for the newsboy problem

Dobrila Petrovic, Radivoj Petrović, Mirko Vujošević

Research output: Contribution to journalArticle

121 Citations (Scopus)

Abstract

This paper presents two fuzzy models for the newboy problem in an uncertain environment. It is assumed that uncertainties may appear in demand and in inventory costs. Fuzzy demand is used to describe a subjective estimate, linguistically expressed by the phrase "demand is about d". Also, fuzzy demand could be derived from evidences about demand recorded in the past. Imprecise inventory costs, such as overage and shortage costs, are represented by fuzzy sets, too. The quantity that should be ordered for a fixed time period minimizes the possible total cost. The computational aspects of the fuzzy models and their interpretations are illustrated by examples.

Original languageEnglish
Pages (from-to)435-441
Number of pages7
JournalInternational Journal of Production Economics
Volume45
Issue number1-3
DOIs
Publication statusPublished - 1 Aug 1996

Keywords

  • Fuzzy demand
  • Inventory
  • Optimization
  • Possible cost

ASJC Scopus subject areas

  • Economics and Econometrics
  • Industrial and Manufacturing Engineering

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