OPTIMIZATION OF THE EOQ MODEL WITH RELIABILITY AFFECTED DEMAND RATE AND UNCERTAINTY

This research establishes an optimal economic order quantity (EOQ) model with reliability influenced by demand rate and constant deterioration rate with uncertainty. The suggested methodology is appropriate for pre-booking products as in the technology market or the automotive industry. Because of market-place instability, various factors including shortage, ordering, and deterioration costs are not fixed in nature. So, it is difficult to have a proper estimate of these costs. Therefore, there is a felt need for developing a traditional economic order quantity model with a fuzzy approach and providing an effective mechanism to deal with such uncertain parameters to increase the accuracy and computational efficiency of the inventory management system. This research aims to bring reliable products of high-quality and adjustment of the stock to regulate the company's inventory amid uncertainty of the cost functions. By optimizing the procurement time point, the total average cost is reduced. The model is validated numerically. Sensitivity analysis is explored in various aspects of different parameters on the total average cost in a crisp and fuzzy environment.