Fuzzy Demand With Controllable Lead Time Inventory Strategy

Started from the 90's 20th century, in a growing number of industries, time has become key factor of competition. In the management of inventory, it is the primary technic for an enterprise to obtain time-based competitive advantage by controlling lead time. A reasonable compression of lead time will make the enterprises earn enormous benefits. More and more enterprises realized that in the process of procurement, not only the quantity-related order quantity decision, but also the time-related lead time should be paid more attention. Meanwhile, the repaid development of market globalization and product upgrading brought more and more uncertain factors which affected the business operation. Fuzzy environment provides a new way of thinking for studying the uncertain factor of inventory management. There are great theoretical and practical significance to study inventory policy with controllable lead time under fuzzy environment. In this paper, the controllable lead time with fuzzy demand issues is the research object, to pursue minimum cost or maximum profit is our target, the main content of this paper are summarized as follows:1. In the continuous review and periodic review controllable inventory model, we consider the demand during lead time as the fuzzy variables. The controllable inventory model of continuous review and periodic review model which include fuzzy demand were established2. Credibility theory and signed distance method are used to defuzzify the model. And an algorithm for the optimal strategy of the model is proposed and verified by a numerical example and the influence of the change paraments' changes on the annual total cost are also analyzed;3. Compared with random environment inventory safety factor, the introduction of the fuzzy environment based on credibility measure of service level constraints to the model, a model of restraint in both the optimal level of service strategy. And we analyze the influence of the service level on the annual total cost;4. In controllable lead time of supply chain model with fuzzy demand, this paper discusses the optimal strategy when enterprise apply decentralized decision-making, centralized decision-making and coordination of the supply chain, a win-win price discount mechanism of the supply chain is given and the range of discounts is also provided. At last an example is given for sensitivity analysis of the parameters.