Vendor Managed Inventory Dynamics Using the Weakest t-Norm Based on Fuzzy Number Arithmetic Operations

This paper develops a vendor managed inventory (VMI) dynamics based on the fuzzy arithmetic. The VMI has been used to reduce the "Bullwhip Effect" in supply chain. This research observes and analyzes the phenomena of VMI by system dynamics based on fuzzy arithmetic of the weakest t-norm (TW). The traditional crisp system dynamics has been widely used. However, it is observable that some variables/parameters may belong to the uncertain factors. Therefore, traditional crisp system dynamics may be necessary to be extended to treat the vague variables or parameters. In this paper the research examines the fuzzy arithmetic of TW in VMI and compares the performance of the traditional crisp system dynamics and system dynamics with fuzzy TW arithmetic. The system dynamics of fuzzy arithmetic can provide the extended information regarding the system behavior uncertainties for the decision-makers.

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