APPLICATION OF MINIMAX DISTRIBUTION FREE PROCEDURE AND CHEBYSHEV APPROACH IN MIXED INVENTORY MODEL INVOLVING REDUCIBLE LEAD-TIME AND SETUP COST WITH IMPRECISE DEMAND

Dharmendra Yadav (), S. R. Singh () and Rachna Kumari ()
Additional contact information
Dharmendra Yadav: Department of Mathematics, Keshav Mahavidyalaya, Delhi-110034, India
S. R. Singh: Department of Mathematics, D.N. (P.G) College, Meerut-250001 (U.P.), India
Rachna Kumari: Department of Mathematics, Meerut College, Meerut-250001 (U.P.), India

Asia-Pacific Journal of Operational Research (APJOR), 2013, vol. 30, issue 04, 1-25

Abstract: In this paper, we extend Lin [Lin, YJ (2008). Minimax distribution free procedure with backorder price discount. International Journal of Production Economics, 111, 118–128] model by fuzzifying the demand rate, based on triangular fuzzy number to increase its applicability and solve the problem by using an alternative approach i.e., Chebyshev approach. We prove the concavity and convexity of the estimate of total variable cost per unit time in fuzzy sense. To compare the expected annual cost of proposed model, defuzzification is performed by two different methods namely signed distance and centroid method. We provide a solution procedure to find the optimal values of lead-time, the order quantity and the backorder price discount by using minimax distribution free procedure and Chebyshev approach. Through numerical example it is shown that there is a significant saving in cost due to crashing cost to reduce the lead-time and the setup cost. We also compare our results with Cheng et al. [Cheng, TL, CK Huang and KC Chen (2004). Inventory model involving lead-time and setup cost as decision variables. Journal of Statistics and Management Systems, 7, 131–141] model and show that Ben-Daya and Raouf's [Ben-Daya, M and A Raouf (1994). Inventory model involving lead-time as a decision variable. Journal of the Operational Research Society, 45, 579–582] model is the special case of our proposed model.

Keywords: Signed distance method; centroid method; Chebyshev inequality; minimax distribution free procedure; imprecise demand; crashing cost (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595913500097
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:apjorx:v:30:y:2013:i:04:n:s0217595913500097

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595913500097

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().