Non Linear Inventory Optimization Model for Stochastic Replenishment and Fuzzy Demand


  • Thiripura Sundari .P.R , Vijayalakshmi. C


This paper mainly deals with the design of non linear Inventory Optimization model for Stochastic
replenishment and fuzzy demand for planning of chemical complexes under the integration of supply
and demand uncertainty. The Stochastic nature can be analysed for the time delays in the chemical
flows inside the chemical process network. In this paper the optimization of the expected profit of
the multi-product inventory is discussed taking into account that the time between two
replenishments are independent random variables. The shortages are considered as a combination of
lost sales and backorders with uncertain demand. The demand is treated as a fuzzy number. The
problem is modelled as an Integer Non Linear Programming problem with space and budget
constraints. For the stochastic replenishments Normal distribution is implemented as probability
density function. A hybrid Fuzzy simulation and Genetic Algorithm is used to solve the model.