A fuzzy EOQ model with backorders and forgetting effect on fuzzy parameters: An empirical study

This paper considers a fuzzy lot-sizing problem with forgetting effect.A new fuzzy EOQ model with backorders and forgetting is developed.The result suggests decreasing the maximum inventory and the total inventory cost. The study of learning effect on inventory models with imprecise parameters is a research topic that has recently emerged. The research papers have published so far studied this aspect from a theoretical point of view and thus the literature lacks the investigation of this topic from a practical standpoint. To close this research gap, we conducted a semi-structured interview with a number of industry experts to gain insights into the prevalence of learning and forgetting in real applications. Based on the insights gained from the interviews, we have developed a recently published model by countering the assumption of full transfer of learning. The model developed herein proposes a situation where the knowledge gained by the operator in setting imprecise parameters deteriorates over the planning cycles due to intermittent planning process. A numerical study suggests that accounting for the effect of knowledge depreciation/forgetting on imprecise parameters leads to reduction in maximum inventory, which consequently reduces the total cost of the system.

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