Supply chain production model with preservation technology under fuzzy environment

Abstract

In this paper, an attempt is made to characterize the preservation technology for deteriorating items to reduce the deterioration rate. This model assumes a single producer and single supplier and formulates a production model with a time varying rate of deterioration rate. Here production and demand are treated as a fuzzy variables and total cost is minimized for both the crisp and fuzzy model. Shortage is allowed on the supplier’s part, which is partially backlogged. A solution procedure is presented to determine an optimal replenishment cycle and total cost per unit time, which is a convex function of preservation technology cost. Results have been validated with relevant example. In a way, the proposed model provides a unique theory to reduce the deterioration rate for the production model.

Keywords

• Single producer
• Single supplier
• Preservation technology
• Partial backlogging
• Fuzzy demand and fuzzy production