Bridging the gap between probabilistic and fuzzy-parameter EOQ models [An article from: International Journal of Production Economics]

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Description:
Given annual demand D, annual unit carrying cost h, and ordering cost per order s, the economic order quantity (EOQ) is that purchase lot size which minimizes the total annual carrying and ordering costs. Given interval of values for h and s (i.e., uniform distributions), Lowe and Schwarz determined, among other things, that the value of EOQ which minimizes the maximum value of ratio of total cost using wrong estimates of h, s, and Q, over total cost using the right estimates should utilize the geometric means of h and s. Vujosevic et al. considered triangular and trapezoid fuzzy distributions for s and h, and provided various ways to determine Q. In this paper, the author evaluates, compares, and improves/extends these approaches for EOQ model with uncertain parameters.