Lost sales reduction and quality improvement with variable lead time and fuzzy costs in an imperfect production system

¹ Chimanbhai Patel Post Graduate Institute of Computer Applications, Ahmedabad, Gujarat, 380 015, India
² Department of Industrial and Management Engineering, Hanyang University, Ansan Gyeonggi-do, 426 791, Korea
³ Department of Basic Science and Humanities, Techno India College of Technology, NewTown, Rajarhat, Kolkata 700 156, India
⁴ Department of Mathematics, Indian Institute of Engineering Science and Technology, Shibpur, Howrah 711103, India

^* Corresponding author: biswajitsarkar@gmail.com

Received: 12 December 2015
Accepted: 15 November 2016

Abstract

This article investigates the effects of lost sales reduction and quality improvement in an imperfect production process under imprecise environment with simultaneously optimizing reorder point, order quantity, and lead time. This study assumes that the demand during lead time follows a mixture of normal distributions and the cost components are imprecise and vague. Under these assumptions, the aim is to study the lost sales reduction and the quality improvement in an uncertainty environment. The objective function in fuzzy sense is defuzzified using Modified Graded Mean Integration Representation Method (MGMIRM). For the defuzzified objective function, theoretical results are developed to establish optimal policies. Finally, some numerical examples and sensitivity analysis are provided to examine the effects of non-stochastic uncertainty.