An imprecise-inventory model with PEND and SEND policy (Q2204648)

Summary: A continuous review economic order quantity (EOQ) model (with shortage) is modelled here. The inventory cost parameters are imprecise in nature. The model is developed for \textit{Partially Enforced Delay} (PEND) and \textit{Strictly Enforced Delay} (SEND) policies with lead time crashing cost. Here demand of the item is a linear function of selling price and usable lead time. For each policy, a set-up cost reduction technique has been applied to the model. Moreover, a statistical \(t\)-test has been used to compare the policies. We also present some numerical examples, sensitivity analysis and their discussions to stabilise the model.