A fuzzy random continuous review inventory model with a mixture of backorders and lost sales under imprecise chance constraint (Q2627687)

Summary: The article investigates a constrained continuous review inventory system with a mixture of backorders and lost sales. The proposed model is developed with the annual customer demand incorporated as a fuzzy random variable. The lead-time is assumed to be constant while the lead-time demand is assumed to be connected to the annual fuzzy random demand through the length of the lead-time. A budget constraint is imposed on the model in the form of an 'imprecise' chance constraint to present a possible way of quantifying fuzzily defined uncertain information of the constraint. A methodology is proposed to determine the optimal order quantity and the reorder point such that the total cost incurred is minimised subject to the constraint. A numerical example is given to illustrate the proposed methodology.