Mathematical Modeling of an Inventory System to Determine Optimum Cost under Two Warehouse Storage System and Fuzzy Environment

Abstract

In the mathematical modeling of an inventory system the main focus in this study is to find the optimum inventory cost under two warehouse storage systems. Inventories are basically stock of goods being held for future use or sale. Maintaining inventories is necessary for any company dealing with physical products, including manufacturers, wholesalers, and retailers. Storing and carrying inventory contain some costs, but facing problem of out of stock and costs associated to it make huge negative Impact on the growth of the company. So to reduce the inventory storage cost and avoid shortage costs, logistic and mathematical inventory strategies are used. The most important thing to emphasize in inventory management is that when to order and how much to order. This thesis presents inventory models with two storages system under fuzzy environment considering various realistic situations such as fuzzy demand, fuzzy deterioration, shortages, inflation, permissible delay in payment, time dependent holding cost and fuzzy holding cost etc. The thesis is composed of four chapters: newline