Abstract: Inventory decisional environment of short life-cycle
products is full of uncertainties arising from randomness and
fuzziness of input parameters like customer demand requiring
modeling under hybrid uncertainty. Prior inventory models
incorporating fuzzy demand have unfortunately ignored stochastic
variation of demand. This paper determines an unambiguous optimal
order quantity from a set of n fuzzy observations in a newsvendor
inventory setting in presence of fuzzy random variable demand
capturing both fuzzy perception and randomness of customer
demand. The stress of this paper is in providing solution procedure
that attains optimality in two steps with demand information
availability in linguistic phrases leading to fuzziness along with
stochastic variation. The first step of solution procedure identifies
and prefers one best fuzzy opinion out of all expert opinions and the
second step determines optimal order quantity from the selected
event that maximizes profit. The model and solution procedure is
illustrated with a numerical example.
Abstract: This paper investigates the effect of product substitution in the single-period 'newsboy-type' problem in a fuzzy environment. It is supposed that the single-period problem operates under uncertainty in customer demand, which is described by imprecise terms and modelled by fuzzy sets. To perform this analysis, we consider the fuzzy model for two-item with upward substitution. This upward substitutability is reasonable when the products can be stored according to certain attribute levels such as quality, brand or package size. We show that the explicit consideration of this substitution opportunity increase the average expected profit. Computational study is performed to observe the benefits of product's substitution.
Abstract: Along with forward supply chain organization needs
to consider the impact of reverse logistics due to its economic
advantage, social awareness and strict legislations. In this paper, we
develop a system dynamics framework for a closed-loop supply
chain with fuzzy demand and fuzzy collection rate by incorporating
product exchange policy in forward channel and various recovery
options in reverse channel. The uncertainty issues associated with
acquisition and collection of used product have been quantified using
possibility measures. In the simulation study, we analyze order
variation at both retailer and distributor level and compare bullwhip
effects of different logistics participants over time between the
traditional forward supply chain and the closed-loop supply chain.
Our results suggest that the integration of reverse logistics can reduce
order variation and bullwhip effect of a closed-loop system. Finally,
sensitivity analysis is performed to examine the impact of various
parameters on recovery process and bullwhip effect.
Abstract: Perishable goods constitute a large portion of retailer inventory and lose value with time due to deterioration and/or obsolescence. Retailers dealing with such goods required considering the factors of short shelf life and the dependency of sales on inventory displayed in determining optimal procurement policy. Many retailers follow the practice of using two bins - primary bin sales fresh items at a list price and secondary bin sales unsold items at a discount price transferred from primary bin on attaining certain age. In this paper, mathematical models are developed for primary bin and for secondary bin that maximizes profit with decision variables of order quantities, optimal review period and optimal selling price at secondary bin. The demand rates in two bins are assumed to be deterministic and dependent on displayed inventory level, price and age but independent of each other. The validity of the model is shown by solving an example and the sensitivity analysis of the model is also reported.