Fuzzy Integrated Mathematical Model for Optimized Inventory Management in an Industrial Environment

Abstract

Now-a-days, the growth of business is very fast and their impact on economy is becoming bigger. To manage the inventory effectively and efficiently is always a challenge for any business organization. Keeping inventory is certainly nothing new. Every enterprise needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. There is, generally, a time lag between the recognition of a need and its fulfillment. The greater the time – lag, the higher will be the requirements for inventory. Mathematical models development and determining the optimal inventory control strategy is related with this problem. Features of inventory management models are that the resulting optimal solutions can be implemented in a fast changing situation where, for example, the conditions are changed daily. Objective of this paper is to investigate the effect of uncertainty in associated key parameters and to propose managerial insights to manage inventory systems within uncertain framework. This paper presents fundamental inventory model integrated with fuzzy system for inventory management..