Fuzzy Inventory Control System for Uncertain Demand and Supply

Abstract

A fuzzy inventory control system for a single item continuous control system is proposed in this research. The model can deal with both uncertain demand and availability of supply using fuzzy logic control system. Conventional stochastic inventory model determines only uncertain demand. However, unavailability of supply can happen in many types of manufacturing system. In the proposed Fuzzy Inventory Control (FIC) system, both demand and availability of supply are described by linguistic terms. Then, the developed fuzzy rules are used to extract the fuzzy order quantity and the fuzzy reorder point continuously. The model is more flexible than the conventional approach due to adjustment of both order quantity and reorder point. A time step simulation is used to analyze the results of inventory cost from the FIC system. Inventory costs of both conventional stochastic models and the proposed inventory system of a case study factory are compared based on the same data sets. It found that FIC system can obtain extremely lower cost than the conventional stochastic model.