Finding the Expected Total Cost and the Reorder Point for the Fuzzy and Non-Fuzzy Probabilistic Storage Models with A Practical Application

Abstract

This research dealt with two cases of probabilistic inventory model, where the first model was applied to the monthly demand data on the products of Diyala general company, which is the distribution transformer (400/11) for the year 2021.The second model was applied after fuzzing data to compare the two models and which one is better to achieve optimization. Where the distribution of demand during the waiting period was found to find the mean and standard deviation The model was applied to obtain the indicators And by using MATLAB program statistical analysis of the data was carried out and model indicators were obtained. Then the data was fuzzy by using Alpha random number method for the purpose of applying the fuzzy probabilistic storage model, where the maximum value, the minimum value and the actual value were calculated. Then, the method of average degree of numerical representation was used to remove fuzzycation of these values and compare the indicators of the two models. It was found out that the expected total cost in the fuzzy probabilistic inventory model is less than the non-fuzzy probabilistic inventory model. The same applies to the expected cost of issuing the order, the expected cost of keeping the stock, and the expected cost of the deficit.