Fuzzy expected value model with inspection errors and two level of trade credit in one replenishment cycle

Abstract

In this paper economic order quantity model with two level of trade credit in one replenishment cycle, time value of money, inspection errors, planned backorders, and sales returns is offered. In those problem demand rate, selling price for good quality items, selling price for defective items, interest paid rate and interest earned rate consider as fuzzy variable. Following expected value model criterion and a fuzzy expected value model are constructed. Fuzzy simulations are employed to estimate the expected value of fuzzy variable and maximum return on sale. In order to solve the fuzzy expected value model, a genetic algorithms based on the fuzzy simulation is designed.