JISE


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Journal of Information Science and Engineering, Vol. 21 No. 4, pp. 673-694


Fuzzy Inventory with Backorder Defuzzification by Signed Distance Method


Jershan Chiang, Jing-Shing Yao+ and Huey-Ming Lee*
Department of Applied Mathematics 
*Department of Information Management 
Chinese Culture University 
Taipei, 111 Taiwan 
E-mail: hmlee@faculty.pccu.edu.tw 
+Department of Mathematics 
National Taiwan University 
Taipei, 106 Taiwan


    In this paper, we consider fuzzy inventory with backorder. First, we fuzzify the storing cost a, backorder cost b, cost of placing an order c, total demand r, order quantity q, and shortage quantity s as the triangular fuzzy numbers in the total cost. From these, we can obtain the fuzzy total cost. Using the signed distance method to defuzzify, we get the estimate of the total cost in the fuzzy sense. Two special cases of the optimal solutions on fuzzifying the storage quantity and order quantity as triangular fuzzy numbers will be treated numerically by the Nedler-Mead algorithm.


Keywords: fuzzy inventory, fuzzy sets, fuzzy total cost, signed distance, extension principle

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