Optimization of an inventory Model for Conclusive and Inconclusive Cost Parameters using Triangular and Trapezoidal Fuzzy Numbers

Volatility in the prices of crude oil creates a very complicated situation for the management of an inventory system. As a result, an unexpected shift in cost parameters occurs. A model of economic order quantity (EOQ) is developed to control the inventory in that situation when a decision-maker is not able to clearly express the cost parameters at the beginning of a system design. Such type of situation is created due to volatility in the price. The purpose of the article is to study the impact of inconclusive cost parameters on total average cost. The holding cost, ordering cost, deterioration cost, and shortage cost are assigned by fuzzy numbers. Then, graded mean integration method (GMIM) is used to defuzzified the total average cost. A comparative study in a crisp environment and fuzzy environment is validated as an explicit condition to control the inventory for reducing the optimum cost.