Fuzzy models for the newsboy problem

Dobrila Petrovic, Radivoj Petrović, Mirko Vujošević

    Research output: Contribution to journalArticlepeer-review

    130 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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