The Model of Management of Inventory with Fuzzy Triangular Demand

The publication presents the algorithm of building the inventory management model, provided that unknown demand for resource is modeled with use of fuzzy logic. The algorithm can be applied also for an innovative product or service, when history data on demand are absent. Thus, based on the observations of demand for such goods and on the basis of experts’ judgment, the predicted value of demand can be represented as a triangular fuzzy number. As a result, the values of the cost function of the inventory management system are respectively fuzzy numbers. For the defazification of this function, the method of median was used in the work, resulting in a real value function of the cost. To find optimal strategies for the operation of the inventory management system, the criterion of minimizing the cost function obtained by the given algorithm was used, which allowed to record optimal solutions of the problem explicitly. The theoretical material is illustrated by numerical examples. The obtained algorithm of search for optimum strategies can be used at developing the software for optimization of procurement at production place in view of absence of history of previous sales