A Periodic Review Inventory Model with Controllable Lead Time and Backorder Rate in Fuzzy-stochastic Environment

In this paper, an attempt has been made to develop a periodic review inventory model by considering lead-time and the backorder rate as control variables in fuzzy stochastic environment. Without loss of generality, we have assumed that all the observed values of the fuzzy random variable, representing the demand as triangular fuzzy numbers. The variance of fuzzy random demand is taken into consideration to give due attention to every fuzzy observations. The protection interval demand has also been assumed to be fuzzy stochastic. The expected shortages are calculated by using credibility criterion. For the proposed model, we provide a solution procedure incorporating numerical technique viz. Scan and zoom method to determine an optimal policy. A numerical example is taken up to illustrate the solution procedure and sensitivity analysis of the optimal solution with respect to the key parameters of the system is carried out.