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A model for vendor managed inventory by applying the economic order quantity with fuzzy demand

Author

Listed:
  • Rika Ampuh Hadiguna
  • Harlina Suzana Jaafar
  • Sabariah Mohamad

Abstract

This paper presented a decision support model for VMI system by applying the economic order quantity (EOQ) with fuzzy demand. The model of fuzzy EOQ that has been developed in this study is intended to accommodate the fuzzy demand. Result of the study shows that the optimal quantity of fuzzy EOQ is influenced by the value of ?1 and ?2. It was known that the value of order quantity (q) will be increased if the decision-makers getting more optimistic regarding the upper limit of the sales forecast implementation. The model formulation that has been introduced fuzzy number for demand to accommodate uncertainty situation.

Suggested Citation

  • Rika Ampuh Hadiguna & Harlina Suzana Jaafar & Sabariah Mohamad, 2011. "A model for vendor managed inventory by applying the economic order quantity with fuzzy demand," International Journal of Enterprise Network Management, Inderscience Enterprises Ltd, vol. 4(4), pages 354-366.
    • Handle: RePEc:ids:ijenma:v:4:y:2011:i:4:p:354-366
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