An Interval-Valued Linear Fractional Programming Approach to a Constant Demand Inventory Model without Shortages (original) (raw)
The paper is developed to study interval-valued inventory optimization problem. We consider a constant demand inventory model without shortages the input data of which are not fixed, but vary in some real bounded intervals. The aim of this paper is to determine the optimal order quantity, maximizing the total profit and minimizing the holding cost subjecting to three constraints: budget constraint, space constraint, and budgetary constraint on ordering cost of each item. We apply interval-valued linear fractional programming (IVLFP) approach to solve the model. In this respect, we convert the IVLFP problem to an optimization problem with interval-valued objective function having its bounds as linear fractional functions. We solved three numerical examples to illustrate the proposed model in crisp case and interval-valued case.