Fuzzy Inventory Model with Shortages in Man Power Planning

Abstract

In this paper, an EOQ (Economical Order Quitting) model with shortages (of employees) can be studied. The cost due to decrease in real wage and the cost involved in moving to a new job are considered, with a constraint that, the decrease in the real income over a period of time is limited. In real life, these costs are uncertain to a certain extent. This uncertainty has been discussed by utilizing the concept of fuzzy set theory. Fuzzy non-linear programming technique using Lagrange multipliers is used to solve the problems in this model. The application of this model in man power planning is illustrated by means of a numerical example. The variations of the results with those of the crisp model have been compared. Further the sensitivity analysis is also presented.

Keywords: Inventory, Economical Order Quitting, Real Wage, Fuzzy Sets, Man Power Planning, Membership Function, Sensitivity Analysis.