A SIMPLISTIC METHOD TO WORK OUT THE EOQ/EPQ WITH SHORTAGES BY APPLYING ALGEBRAIC METHOD AND ARITHMETIC GEOMETRIC MEAN INEQUALITY IN FUZZY ATMOSPHERE

Abstract

In this research, we discuss a new method to appraise the EOQ/EPQ with shortages by manipulating algebraic method and Arithmetic Geometric Mean (AGM) inequality in fuzzy surroundings. This article proposes to find both the optimal lot size and optimal shortage level without any derivatives. This method is very simple to analogize with other procedure to derive EOQ/EPQ. Here the demand rate and shortage cost are taken as trapezoidal fuzzy number. The effectiveness of the proposed method is illustrated by means of numerical examples.