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An EOQ model with backlogging

a

Sujit Kumar De & Shib Sankar Sana

a

Department of Mathematics, Midnapore College, Medinipur (W), West Bengal, India

Department of Mathematics, Bhangar Mahavidyalaya, University of Calcutta, Bhangar,

West Bengal, India
Published online: 19 Jan 2015.

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To cite this article: Sujit Kumar De & Shib Sankar Sana (2015): An EOQ model with backlogging, International Journal of
Management Science and Engineering Management, DOI: 10.1080/17509653.2014.995736
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International Journal of Management Science and Engineering Management, 2015

http://dx.doi.org/10.1080/17509653.2014.995736

An EOQ model with backlogging

Sujit Kumar Dea and Shib Sankar Sanab*
a

Department of Mathematics, Midnapore College, Medinipur (W), West Bengal, India; bDepartment of Mathematics, Bhangar
Mahavidyalaya, University of Calcutta, Bhangar, West Bengal, India
(Received 25 August 2014; final version received 2 December 2014)

Downloaded by [117.205.164.40] at 03:49 22 January 2015

This paper deals with a new approach of linguistic dichotomous fuzzy variables for a classical backordered EOQ (Economic
Order Quantity) model with PE (Promotional Effort) and selling price dependent demand rate. In practice, we have observed
that the demand rate during a shortage period decreases with time. Based on these assumptions, we have developed a cost
minimization problem (a crisp model) by trading off setup cost, inventory cost, backordering cost and cost for promotional
effort. Then, we have studied a fuzzy model by considering the coefficient vectors as pentagon fuzzy numbers associated
with some co-ordinates. Defuzzification is made with the help of the center-of-gravity method followed by a ranking index
and the Euclidean distance of the objective function. Considering a numerical example, phi- (w-)coefficients have been
computed for each method and a decision is made according to the natural characteristics of the decision variables. Finally,
conclusions are drawn, explaining the justification of the model.
Keywords: backorder inventory; pentagon fuzzy number; center of gravity; ranking index; Euclidean distance; phicoefficient; optimization
JEL Classification: C01; C02; C61; M37

1. Introduction
The appropriate stock of inventory is a major concern in
supply chain management (Cardenas-Barron, 2007; Cardenas-Barron & Porter, 2013; Cardenas-Barron, Taleizadeh, & Trevino-Garza, 2012a; Cardenas-Barron, Teng,
Trevino-Garza, Wee, & Lou, 2012b; Cardenas-Barron &
Trevino-Garza, 2014; Cardenas-Barron, Wee, & Blos,
2011; He, Zhao, Zhao, & He, 2009; Konstantaras, Skouri, &
Papachristos, 2009; Roy, Sana, & Chaudhuri, 2014; Sana,
2014; Sana, Mondal, Sarkar, & Chaudhuri, 2011; Sarkar,
2013; Teng, Cardenas-Barron, & Lou, 2011) which
fluctuates frequently with the uncertain nature of demand
in the market. Quite often, the uncertain nature of demand
and the delivery lead time cause shortages. Customer
demand in stock-out situations is either fully or partially
backlogged, depending on the patience of the customers.
Among others, the work of Ghosh and Chaudhuri (2006),
Ghosh, Khanra, and Chaudhuri (2011), Sana (2013), Sana
and Goyal (2014), Sarkar, Cardenas-Barron, Sarkar, and
Singgih (2014), Sarkar, Sana, and Chaudhuri (2010,
2013b), Sarkar, Saren, and Wee (2013a), Sarkar and Sarkar
(2013), and Skouri, Konstantaras, Papachristos, & Ganas
(2009) should be mentioned.
The demand of the end customers can be increased by
several types of promotional efforts. Many studies have
focused on the effect of promotions on sales (Goyal &
Gunasekaran, 1995; Ramanathan & Muyldermans, 2010;
Sana, 2010, 2011a,b). Generally speaking, customers
purchasing behaviour is predicted from implication of
promotions such as price discounting, advertising, free
gifts, better services, delay-in-payments, stock display, etc

*Corresponding author. Email:shib_sankar@yahoo.com

q 2015 International Society of Management Science and Engineering Management

(Goyal & Chang, 2009; Soni & Shah, 2008; Zhou, Min, &
Goyal, 2008).
Owing to advances in modern research, fuzziness of
key parameters and variables is essential for analyzing any
kind of inventory control problem. In many cases,
fuzziness arises owing to the variable meaning of several
cost parameters and demand rates with respect to the
ordering statement in a specific language. Zadeh (1965)
first developed the concept of fuzzy set theory. Later,
Bellman and Zadeh (1970) applied fuzzy set theory to
several decision making problems in operations research.
Thereafter, numerous research articles have reported
studies in this direction. Kaufmann and Gupta (1988)
developed a fuzzy mathematical model in engineering and
management science. Zimmermann (1978) proposed
fuzzy linear programming with several objective functions. Several types of defuzzification methods are
available in the fuzzy literature (Allahviranloo &
Saneifard, 2012; Bass & Kwakernaak, 1977; Cheng,
1998; Chu & Tsao, 2002; Ezatti & Saneifard, 2010).
Vojosevic, Petrovic, and Petrovic (1996) fuzzified
the order cost into a trapezoidal fuzzy number in their
backorder model. Based on this rule, Wu and Yao (2003)
studied fuzzy inventory with backordering for a fuzzy
order quantity and a fuzzy shortage quantity. Lee and Yao
(1999) investigated an economic order quantity model
without backordereing in the fuzzy sense, using the fuzzy
extension principle. Kao and Hsu (2002) developed a lot
size reorder point inventory model for fuzzy demands,
using the a-cut of the fuzzy numbers. They used the
ranking index method to solve the model. Authors like De,
Kundu, and Goswami (2003) suggested an EPQ model
for fuzzy demand rate and fuzzy deterioration rate, using
the a-cut of the membership function for the fuzzy
parameters. De, Kundu, and Goswami (2008) presented an

S.K. De and S.S. Sana

economic ordering policy of deteriorated items with

shortage and fuzzy cost coefficients for vendor and buyer.
Mitra Basu, Mahapatra, and Mondal (2012) provided an
algorithm based mean potentiality approach to obtain a
balanced fuzzy soft set solution in a decision making
problem. Kumar, De, and Goswami (2012) developed a
fuzzy model with ramp type demand rate and partial
backlogging. Ojha, Das, Mondal, and Maiti (2013)
introduced a modified subgradient method for optimization and its effectiveness in a fuzzy transportation model
in which transportation costs were imprecise. Recently, De
and Sana (2013a,b) developed a fuzzy and an intuitionistic
fuzzy backorder EOQ model, respectively, considering the
demand function as a function of promotional effort and
selling price. Taleizadeh, Niaki, Aryanezhad, and Shafii
(2013) discussed a hybrid method of fuzzy simulation and
a genetic algorithm to optimize constrained inventory
control systems with stochastic replenishments and a fuzzy
demand pattern. Recently, De and Sana (2014), De,
Goswami, and Sana (2014) and Das, De, and Sana (2014)
investigated inventory models including several issues in a
fuzzy environment.
In the existing literature, no articles under dichotomous
variables such as strong fuzzy and weak fuzzy numbers
have yet been discussed. Earlier authors have simply placed
their results according to the outputs of the objectives and
have interpreted them accordingly. But in our study, we
have incorporated the general motivation of human
behavior in considering the ordering and shortage quantities
in the model. Then, we have used the phi- (w-)coefficient to
select the best optimal policy. In the proposed model, we
have studied a backlogging EOQ model within a pentagon
fuzzy environment, and defuzzification is accomplished
with the help of the center-of-gravity method. Next, we
have optimized the ranking index function and Euclidean
distance function considering both of them as strong fuzzy
and weak fuzzy numbers. Numerical illustrations are made
with LINGO software. Finally, decisions are made in the
conclusions section according to the values of the phicoefficients in a numerical example.

2. Notation and assumptions

The following notation and assumptions are used to
develop the proposed model.

D:
R:
D0 :
k:
m:
t1:
t2:
T:
Z:

The normal demand rate per month when unit selling

price reaches r/t.
Normal demand rate per month for without backorder period.
Demand rate per month during shortage period.
Publicity (advertising) cost per cycle time ($).
A positive number.
Inventory run time (months)..
Shortage period (months).
Cycle time (months).
Average cost of the inventory ($).

Assumptions
1. Replenishment is instantaneous but its order size is
finite.
2. The time horizon is infinite (months)
3. Shortages are allowed and the demand rate in a
shortage period is dependent on the length of the
period and the rate is constant throughout the
period [0,t2]. Here, the demand rate during a
shortage period is D0 Re2s2rt2 , where r is PE
and 0 , r , s. The parameter s (sigma) is the
decision makers choice; it can be determined
from practical experience of the nature of the
demand function for a particular item. Obviously,
r is less than s, because D0 is a decreasing function
over a shortage period. The notion is that D0 ! 0
when t2 ! 1.
4. The initial demand rate is R Der2tp , where p is
the unit selling price and 0 # t , 1. The notion is
that R ! 0 when p ! 1.
3. Crisp mathematical model
In this model (Figure 1), the inventory starts with
shortages and it continues up to time t2. In this period [0,
t2], the demand rate is D0 . At time t2, the total amount of
shortages (S) during the period [0,t2] is adjusted from the
lot size (q). The remaining amount (q 2 S) meets the
demand with rate R for the period [0,t1]. Hence, the total
cycle length is T (t2 t1). Therefore, the average cost
function by trading off setup cost, inventory cost, shortage

Notation
q:
S:
c 1:
c 2:
c 3:
p:
r:
s:

t:

Order quantity per cycle.

Shortage quantity per cycle.
Setup cost per cycle ($).
Inventory holding cost per unit quantity per cycle
($).
Shortage cost per unit quantity per cycle ($).
Selling price per unit item ($).
Promotional effort (PE), a positive number.
A positive number associated with demand rate
during shortage period.
A fractional number associated with unit selling
price in normal demand rate.

Inventory level

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(qs)

t2

t1

s
T

Figure 1. Inventory versus time.

Time

International Journal of Management Science and Engineering Management

cost and promotional cost is
Z

c1 c2 Rt21 c3 D0 t22

kr m ;
T
2T
2T

where
R Der2tp
D0 Re2s2rt2

9
>
>
>
>
r1t2 2tp2st2 >
=
De

S D0 t2 Dt2 er1t2 2tp2st2

q Der2tp ft1 t2 e2s2rt2 }:

>
>
>
>
>
;

Now, our objective is to minimize the cost function Z in

crisp sense, i.e.
c1 c2 Rt21 c3 D0 t22
Minimize Z

kr m
T
2T
2T

words such as kCheap; High; Veryhigh; Expensivel whose

membership values are expressed as shown in Table 2.
However, the demand rate and other parameters are
likely to be expressed as kLow; Average; Moderate; Highl
and their membership values may be expressed as shown
in Table 3.
The membership function of a parameter for PFN is
given below (see Figure 2):
8
0
>
>


>
>
x2a1
>
>
w
1
>
a2 a1
>
>
>


>
>
< w 1 2 w x2a2
1
1 a3 a2
mx


>
>
>
a4 2x
>
w

1
2
w

>
2
2
a

a
>
4
3
>
>

> 
>
>
a
2x
>
: w2 a55 a4

if x # a1 and x $ a5
if a1 # x # a2
if a2 # x # a3
if a3 # x # a4
if a4 # x # a5
6

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For the optimum value of Z in Equation (3), we have

dZ
0; which implies
dt2



s 2 rt2
2c2 RT 2 t2 c3 t2 1 2
Re2s2rt2 0 :
2

Solving the above, we have t2 t*2 (say).

Also,


d2 Z c 2 R c 3 R
s 2 r2 t22

2
2t

s
2
r

e2s2rt2 . 0
2
T
T
2
dt22
5

4.2. Basic arithmetic operations on ordered PFN

Let A ka1 ; a2 ; a3 ; a4 ; a5 l and B b1 ; b2 ; b3 ; b4 ; b5
be
two ordered PFNs, then for the usual arithmetic operations
{ , 2 , , 4 }, namely addition, subtraction, multiplication and division between A and B are given as follows:
(i) A B ka1 b1 ; a2 b2 ; a3 b3 ; a4 b4 ; a5 b5 l.
(ii) A 2 B ka1 2 b5 ; a2 2 b4 ; a3 2 b3 ; a4 2 b2 ; a5 2 b1 l.
(iii) A B kMinai bj ; Maxai bj l ; i; j 1; 2; 3; 4; 5:;
(iv) A=B kMinai =bj ; Maxai =bj l for bj 0; ; i; j
1; 2; 3; 4; 5:

holds always. Therefore, the given objective function has a

unique minimum, keeping r as a fixed number.
Table 2. Fuzzy linguistic cost vector.

3.1. Numerical Example 1

Let us consider D 100 units, r 1.5, s 2.2, t .06,
setup cost c1 150 ($), holding cost per unit item c2 1.5
($), Shortage cost c3 15 ($), m 3, selling price per unit
item p 20 ($), publicity cost k 4($), the cycle time
T 1 month, then we get the following results (Table 1).

Literal terms

Cheap

High

Cost limit
Membership range

[a1, a2]
[0, w1]

[a2, a3]
[w1, 1]

Table 3.

Preliminaries

4.1. Pentagon fuzzy number (PFN)

A fuzzy number of the form A~ ka1 ; a2 ; a3 ; a4 ; a5 l is called
a pentagon fuzzy number. Such fuzzy numbers arise when
the characteristics of several fuzzy parameters are viewed as
some semantic meanings of the linguistic words associated
with the trade itself. For this reason, we may re-construct
and re-define the cost vectors using some characteristic

Table 1.
q*

Expensive

[a3, a4]
[1, w2]

[a4, a5]
[w2, 0]

Fuzzy linguistic demand and other parameters.

Literal terms

4.

Very high

Value limit
Membership range

Low

Average

Moderate

[b1, b2]
[0, u1]

[b2, b3]
[u1, 1]

[b3, b4]
[1, u2]

Crisp optimal solution.

S*

134.073 12.589

t*1 days t*2 days

27

D0

Z*($)

134.986 125.858 254.94

Figure 2. Geometrical representation of PFN.

High
[b4, b5]
[u2, 0]

S.K. De and S.S. Sana

(

dA

h da1 ; da2 ; da3 ; da4 ; da5 i

if d $ 0

h da5 ; da4 ; da3 ; da2 ; da1 i

if d , 0:

If we set w 1 1 w 2, a2 ! a 3 a4 and
a1 ! a3 a5, then we have x0 ! a3 a3 a3 =3 !
a3 ; a crisp value.

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8
m m m m m
a1 ; a2 ; a3 ; a4 ; a5
>
>
>


>
m m m m
>
< am
5 ; a4 ; a3 ; a2 ; a1
A m
m1 m2 m3 m4 m5 
a1 ; a2 ; a3 ; a4 ; a5
>
>
>

m1 m2 m3 m4 m5 
>
>
: a5 ; a4 ; a3 ; a2 ; a1

4.3. Centroid of a pentagon fuzzy number

From the geometry, we know that, if a closed region R 2 is
formed by a variable point (x,y) where y is a function of x,
then the
 centroid of the enclosed region is defined by
x0 ; y0 and is given by

x dx dy
x0 R
7
R dx dy

if

m.0

if

m,0

for 0 , m1 , m2 , m3 , m4 , m5
for m1 , m2 , m3 , m4 , m5 , 0:

4.4.

Ranking index

If x is a fuzzy element (Chen, 1985), then its ranking index

can be obtained with the help of the center of gravity
x0 ; y0 of that fuzzy element in the following way:
q
 2
2
Ix x0 y0 :
11
Now, the maximum index value occurs for a strong fuzzy
number, otherwise it is a weak fuzzy number.

and

y dx dy
y0 R
:
R dx dy

Now, using (7) and (8), we get

4.5. Euclidean distance

Let dmax Maxfx; x [ Domain A1 ; A2 ; . . . ; An21 ; An },
where the Ais are fuzzy sets for i 1,2, . . . , n. Now, the
distance between the two points x0 ; y0 and (dmax,0) is
called the Euclidean distance and is denoted by

x dx dy
R1
R2
R3
R4

x0 

R1 R2 R3 R4 dx dy








1 w1 2a22 2 a1 a2 2 a21 1 2 w1 2a23 2 a3 a2 2 a22 1 2 w2 2a24 2 a3 a4 2 a23 w2 a4 a5 a25 2 2a24

3
w1 a2 2 a1 1 2 w1 a3 2 a2 1 2 w2 a4 2 a3 w2 a5 2 a4

and


y dx dy
R1
R2
R3
R4

y0 

R1 R2 R3 R4 dx dy

1 w21 a2 2 a1 1 2 w1 1 2w1 a3 2 a2 1 2 w2 2 w2 a4 2 a3 w22 a5 2 a4

:
3
w1 a2 2 a1 1 2 w1 a3 2 a2 1 2 w2 a4 2 a3 w2 a5 2 a4

For more details, see Equations (A1) (A12) in

Appendix A.
Particular cases of (9) and (10) are as follows.
(i) If we set w1 1 w2 and a2 ! a3 a4, then
x0 ! a1 a3 a5 =3 and y0 ! 1=3; which is the
case of a triangular fuzzy number.
(ii) If we set w1 1 w2 and a2 a3 a4 , then we
have

dx

q

2
x0 2 dmax 2 y0 2 0 :

10

12

Here, minimizing the distance, we have the higher index

value which is generated from a strong fuzzy number
(membership degree greater than 0.5), otherwise it is a
weak fuzzy number.



1 2a22 2 a21 a25 2 2a24 a4 a5 2 a1 a2
x0 !
3
a2 2 a1 a5 2 a4

4.6. Phi- (w -)coefficient

Let X and Y be two genuinely dichotomous variables and
their corresponding scores be as shown in Table 4.
Therefore, the correlation coefficient between X and Y
is given by the following formula:

and y0 ! 1=3; which are cases of trapezoidal fuzzy

numbers.

AD 2 BC
w p
A BC DB DA C

13

International Journal of Management Science and Engineering Management

Table 4. Score value of dichotomous variables.
X
Y

Strong fuzziness

Weak fuzziness

Total

Strong fuzziness
Weak fuzziness
Total

A
C
AC

B
D
BD

AB
CD

5.

Fuzzy mathematical model

From the crisp model (1), it is obvious that, except for

t1andt2, the other parameters are constant. To cope with
real-world situations, we consider the key parameters as
pentagon fuzzy numbers. Then, the fuzzified form of (1)
can be written as follows:
,

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Minimize Z~

~ r~2tp T 2 t2
c~1 c~2 De

T
2T

Now, using the fuzzy values (15) and arithmetic operations

(see Section 4.2), we have
9


~
m3
m5
m2
m4
1
>
A0 k 1 r m
>
1 ; k 2 r2 ; k 3 r3 ; k 4 r4 ; k 5 r5 ;
>
>
>
>
~
>
>
A1 hc11 ; c12 ; c13 ; c14 ; c15 i
>
>
>
>

1
>
~
r1 2t5 p5 1
r2 2t4 p4 1
r3 2t3 p3
>
A2 2 c21 D1 e
; 2 c22 D2 e
; 2 c23 D3 e
; >
>
=
1
r4 2t2 p2 1
r5 2t1 p51
c
D
e
;
c
D
e
i
24
4
25
5
2
2
>
>
>

1
~
>
r1 2t5 p5 r1 2s5 t2 1
; 2 c32 D2 e r2 2t4 p4 r2 2s4 t2 ; >
A3 2 c31 D1 e
>
>
>
>
1
r3 2t3 p3 r3 2s3 t2 1
r4 2t2 p2 r4 2s2 t2 >
>
c
D
e
;
c
D
e
;
>
2 33 3
2 34 4
>
>
>
>
1
r5 2t1 p1 r5 2s1 t2
;
i:
2 c35 D5 e
17
Therefore, using (17), the fuzzy objective function (14)
may be written as

~ r~1t2 2tp~ 2s~t2 t22

c3~ De

k~ r~ m
2T

Z hZ 1 ; Z 2 ; Z 3 ; Z 4 ; Z 5 i;

14
where

t2

1
1
r 1 2 t5 p 5
1
1
Z 1 k 1 rm
T2t
12 c31 D1 e r1 2t5 p5 r1 2s5 t2 T2
1 T c11 2 c21 D1 e
T
2

7
6
6
t22 7
T2t1 2
1
1
r 2 2 t4 p 4
1
r2 2t4 p4 r2 2s4 t2
2
7
6 Z 2 k 2 rm

c
D
e

c
D
e

2
T 12
2 22 2
2 32 2
T
T 7
6
7
6
6 Z k rm3 1 c 1 c D e r3 2t3 p3 T2t1 2 1 c D e r3 2t3 p3 r3 2s3 t2 t22 7
3 3
6 3
T 13
2 23 3
2 33 3
T
T 7
7
6
6
t22 7
T2t1 2
1
1
r 4 2 t2 p 2
1
r4 2t2 p2 r4 2s2 t2
4
7
6 Z 4 k 4 rm

c
D
e

c
D
e

14
24
4
34
4
4
T
2
2
T
T 7
6
5
4
t22
T2t1 2
1
1
r5 2t1 p1
1
r5 2t1 p1 r5 2s1 t2
5
Z 5 k 5 rm

c
D
e

c
D
e

:
15
25
5
35
5
5
T
T
T
2
2
subject to the constraints 0 , r , s and 0 # t2 # T,
where the PFN vector components are given by c~1 kc11 ;

18

Now, using (9) and (10), the centroid of Z is given

by









1 w1 2Z 22 2 Z 1 Z 2 2 Z 21 1 2 w1 2Z 23 2 Z 3 Z 2 2 Z 22 1 2 w2 2Z 24 2 Z 3 Z 4 2 Z 23 w2 Z 4 Z 5 Z 25 2 2Z 24
x0
3
w1 Z 2 2 Z 1 1 2 w1 Z 3 2 Z 2 1 2 w2 Z 4 2 Z 3 w2 Z 5 2 Z 4
19
,

c12 ;c13 ;c14 ;c15 l; c2 kc21 ;c22 ;c23 ;c24 ;c25 l; c~ 3 kc31 ;c32 ;
~ kD1 ;D2 ;D3 ;D4 ;D5 l; r~ kr1 ; r2 ; r3 ; r4 ; r5 l;
c33 ;c34 ;c35 l; D
y0

1 w21 Z 2 2 Z 1 1 2 w1 1 2w1 Z 3 2 Z 2 1 2 w2 2 w2 Z 4 2 Z 3 w22 Z 5 2 Z 4

:
3
w1 Z 2 2 Z 1 1 2 w1 Z 3 2 Z 2 1 2 w2 Z 4 2 Z 3 w2 Z 5 2 Z 4

t~ kt1 ; t2 ; t3 ; t4 ; t5 ;l ks~ s1 ; s2 ; s3 ; s4 ; s5 l; km
~ m1 ;m2 ;
m3 ;m4 ;m5 l; p~ kp1 ;p2 ;p3 ;p4 ;p5 l, and k~ kk1 ;k2 ;k3 ;k4 ;k5 l:
Let us rewrite (14) as follows:
~

MinZ A0 A1 F 1 A2 F 2 A3 F 3 ;
where
t2

2
; F 3 T2 ;
F 1 T1 ; F 2 T2t
T
2

A0 kr m ; A1 c1 ; A2 12 c2 Der2tp ;
A3

and

1
r2tpr2st2
:
2 c3 De

9
>
>
>
=
>
>
>
;

15

16

20

5.1. Cases of optimality

For optimality, the following cases arise
(i) The objective function is strong fuzzy for ranking
index [Max I Z ].
(ii) The objective function is weak fuzzy for ranking
index[Min I(Z)].
(iii) The objective function is strong fuzzy for
Euclidean distance [Min d(Z)].
(iv) The objective function is weak fuzzy for
Euclidean distance [Max d(Z)].

S.K. De and S.S. Sana

Now, Using (9) and (10), the ranking index and Euclidean
distance of the order and shortage quantities are
8
q
2  2
>
* Iq
>
q
x
q yq
<
q
21
 2
>
2
*
>
: S IS xS yS
and
8
q

2  2
>
* dq
>
q
xq 2 dqmax yq
<
q

2  2
>
* dS
>
xS 2 dSmax yS ;
S
:

22

where

distortion cannot be avoided. Given this situation, a

decision maker will always have to be prepared and
capable of handling all possible eventualities, whether for
better or worse. For this reason, whenever we talk about
the cost of an item, possible associations/ideas will arise
like kCheap; High; Veryhigh; Expensivel. A decision
maker (DM) will then decide and make an estimation of
the inventory cost under the possible considerations of the
declarations of the ordering statements. Finally, he/she
will have to decide the best membership grade of fuzzy
parameters when the cost of the commodities are cheap,
high, very high and out of control in the supermarket.
Similarly, the fuzzy linguistic associations of the demand
rate and other parameters are kLow; Average;
Moderate; Highl. All these associations are based on

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1 u1 2q22 2 q1 q2 2 q21 1 2 u1 2q23 2 q3 q2 2 q22 1 2 u2 2q24 2 q3 q4 2 q23 u2 q4 q5 q25 2 2q24
xq
3
u1 q2 2 q1 1 2 u1 q3 2 q2 1 2 u2 q4 2 q3 u2 q5 2 q4

yq

1 u21 q2 2 q1 1 2 u1 1 2u1 q3 2 q2 1 2 u2 2 u2 q4 2 q3 u22 q5 2 q4

3
u1 q2 2 q1 1 2 u1 q3 2 q2 1 2 u2 q4 2 q3 u2 q5 2 q4









1 u1 2S22 2 S1 S2 2 S21 1 2 u1 2S23 2 S3 S2 2 S22 1 2 u2 2S24 2 S3 S4 2 S23 u2 S4 S5 S25 2 2S24
xS
3
u1 S2 2 S1 1 2 u1 S3 2 S2 1 2 u2 S4 2 S3 u2 S5 2 S4

yS

1 u21 S2 2 S1 1 2 u1 1 2u1 Z 3 2 Z 2 1 2 u2 2 u2 S4 2 S3 u22 S5 2 S4

3
u1 S2 2 S1 1 2 u1 S3 2 S2 1 2 u2 S4 2 S3 u2 S5 2 S4

23

24

25

26

and
2
"

S1 ; S2 ; S3 ; S4 ; S5
q1 ; q2 ; q3 ; q4 ; q5 ;

#T

D1 t2 er1 1t2 2t5 p5 2s5 t2

6
6 D2 t2 er2 1t2 2t4 p4 2s4 t2
6
6
D t er3 1t2 2t3 p3 2s3 t2
6
6 32
6
6 D4 t2 er4 1t2 2t2 p2 2s2 t2
4
D5 t2 er5 1t2 2t1 p1 2s1 t2

5.2. Implications of introducing PFN

In global trading system, a universal language is used
throughout the world. But companies from different
regions of the world have different local/regional
languages. Some companies usually prefer to interact
with other companies using their own regional language.
So, to perform/order items, a language translation is
essential. Since each and every language has its own
limitations regarding translating the main sense/import of
a statement properly, so there will always be a chance of
the meaning of words being distorted. Such kinds of

D1 t2 er1 2t5 p5 ft1 t2 e2r1 2s5 t2 }

7
D1 t2 er2 2t4 p4 ft1 t2 e2r2 2s4 t2 } 7
7
7
D1 t2 er3 2t3 p3 ft1 t2 e2r3 2s3 t2 } 7
7
7
D1 t2 er4 2t2 p2 ft1 t2 e2r4 2s2 t2 } 7
5
D1 t2 er5 2t1 p1 ft1 t2 e2r5 2s1 t2 }

27

proper market surveys and membership grades that are to

be designed according to the analysis of the collected data
with proper norms. Hence, PFN has an emergent
application in current applied inventory problems.

5.3.

Numerical Example 2

Let the initial assumptions be c1~ k110; 135;

150; 160; 170l, c~2 k0:6; 1:1; 1:5; 2; 2:5l, c~3 k11; 13;
~ k100; 105; 110; 125; 130l, r~ k1; 1:2;
15; 17; 24l, D

International Journal of Management Science and Engineering Management

Table 5.

The general solution of the fuzzy model.

Case
(i)
(ii)

Max IZ
Min IZ

I(q)

I(S)

Z*

476.146
182.912

353.866
97.074

298.02
164.36

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1:5; 1:8; 2:2
, t~ k0:02; 0:04; 0:06; 0:08; 0:1l, s~ k1; 1:4;
1:7; 2:2; 3l, m
~ k2:2; 2:6; 3; 3:4; 3:6l, p~ k14:5; 16:8;
20:5; 24:2; 26:5l, k~ k2:5; 3; 5; 8; 11l, w1 0.85, w2
0.65, u1 0.95 and u2 0.65. Then, we have dZmax 170,
dqmax dSmax 130 and get the results shown in Table 5.
*
*
Here, we have obtained t1 12 days, t2 18 days for
*
*
strong fuzziness and t1 27:5 days, t2 2:5 days for weak
fuzziness. The phi-coefficients are provided in Tables 6 8.
Then, the correlation coefficient between I(Z) and d(Z)
is obtained with the help of (13) as w 0.289.

6.

Sensitivity analysis

Let
us
change
each
of
the
parameters
fc1 ; c2 ; c3 ; d; k; r; t; p; s; m; T} from 2 50 to 50% to
study on the optimal solution for the crisp model.

7. Comments on sensitivity analysis

From Table 9 we see that, within a month, opening time
27 days and closing time 3 days occur only when the
parameters {c1, d, k, t, p, m, T} are being changed from
2 50 to 50%. The parameters m and k are less sensitive
in respect of cost reduction. The parameters c1 and d are
moderately sensitive. On the other hand, opposite
directional changes are observed in the parameters t, p
and T in which T is highly sensitive and the other two have
average sensitivity. However, for the cases of fluctuating

Table 6.

I(Z)
d(Z)
Total
Table 7.

q
S
Total

Computation of the phi-coefficient.

Strong fuzziness

Weak fuzziness

Total

298.02 (A)
163.85 (C)
461.87 (A C)

164.36 (B)
297.74 (D)
462.10 (B D)

462.38 (A B)
461.59 (C D)

Computation of the phi-coefficient for I(Z).

Strong fuzziness

Weak fuzziness

Total

476.146(A)
353.866 (C)
830.012 (A C)

182.912 (B)
97.074 (D)
279.986 (B D)

659.058(A B)
450.94(C D)

Note: The phi-coefficient between q and S is w 20.0403.

Table 8.

q
S
Total

Computation of the phi-coefficient for d(Z).

Strong fuzziness

Weak fuzziness

Total

182.912 (A)
97.074 (C)
279.986 (A C)

346.146 (B)
223.866 (D)
570.012 (B D)

659.058 (A B)
320.94 (C D)

Note: Here, the phi-coefficient between q and S is w 0.0446.

Cases
(iii)
(iv)

Min dZ
Max dZ

d(q)

dS

Z*

182.912
346.146

97.074
223.866

163.85
297.74

opening and closing time durations, a negligible sensitivity

occurs in the cases of c3 and s, in which c3 is
unidirectional and the other is of the opposite direction.
Also, c2 has average sensitivity while r has moderate
sensitivity and it has no feasible solution for the 50%
change. Throughout the whole table, one may observe that
the minimum cost attains $174. 46 for the 50% change
of T, providing an order quantity of 134.073 units and a
shortage quantity of 12.579 units, with less than three days
shortage duration in a month. This reveals that the average
optimum cost increases as the time horizon duration
increases. Moreover, the maximum cost attains $496.39
for the 2 50% change in the parameter T. We know that
fuzzy optimization generally provides us a better result
than the crisp result. This is why we have gone through the
solution space under the strong and weak fuzzy numbers.

8. Conclusion
In this paper, we have developed a solution procedure for a
backorder EOQ model having shortage time dependent
demand rate when the coefficient vectors are pentagon
fuzzy numbers. Earlier researchers have usually used
parabolic, triangular or trapezoidal fuzzy numbers to
fuzzify their models. In our present study, we have extended
the model to pentagon fuzzy numbers beyond these
assumptions. These kinds of consideration have great
practical implications in modern applied research on
inventory management. Regarding the solution, we usually
see that most researchers have tried to make a decision
about the output of the numerical results of the objective
function. This decision may not be supported by the attitude
of the decision maker (DM). So the basic intention behind
any kind of decision variable is very important. In a
backorder inventory model, the basic intention is to reduce
the amount of shortage quantity with respect to reordering
the considerable amount of items in stock. That is, in a
linguistic (behavioral) fuzzy environment, the relationship
between order quantity and shortage quantity would be
such that their correlation coefficient is negative. However,
in many cases this has not been tested by the researchers.
For data handling, several methods are available in the
literature, but the choice is in general ambiguous because of
the following questions.
(a) What data are acceptable?
(b) Which method is correct and why?
(c) What should we have to do to select the best reliable
data?
We cannot answer these questions unless we genuinely
analyze the dichotomous fuzzy variables (strong weak)

S.K. De and S.S. Sana

Table 9.
Parameter
c1

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c2

c3

Crisp optimal solution.

Change (%)
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50
50
30
2 30
2 50

q*

S*

134.073
134.073
134.073
134.073
201.109
174.295
93.851
67.036
73.581
93.539
192.171
244.297
73.581
93.539
192.171
244.297
134.073
134.073
134.073
134.073
134.073
134.073
134.073
134.073
134.073
134.073
134.073
134.073
132.982
133.465
134.533
134.753
134.575
134.440
133.161
131.528
131.685
132.853
134.941
135.399

211.239
84.992
62.657

12.589
12.589
12.589
12.589
18.884
16.366
8.812
6.295
6.909
8.783
18.044
22.939
6.909
8.783
18.044
22.939
12.589
12.589
12.589
12.589
12.589
12.589
12.589
12.589
12.589
12.589
12.589
12.589
18.172
15.997
9.008
6.526
8.599
9.849
17.404
23.265
13.312
12.975
12.288
12.118

19.411
8.187
6.159

t*2 days

Z * ($)

(Z* 2 Z*)/Z*100%

27

27

27

27

27

27

27

25.5
26.1
28
28.5
28
27.7
25.7
24
26.3
26.6
27.3
27.4

27.2
26.7
26.6

4.5
3.9
2
1.5
2
2.3
4.3
6
3.7
3.4
2.7
2.6

2.8
3.3
3.4

329.94
299.94
209.94
179.94
300.67
282.38
227.51
209.22
213.69
227.30
294.57
330.12
213.69
227.30
294.57
330.12
261.69
258.99
250.89
248.19
266.25
260.89
250.82
248.79
174.46
199.23
358.42
496.39
293.73
278.74
229.52
211.63
258.13
257.14
250.97
245.89
253.64
254.24
255.51
255.82

323.69
212.64
194.50

29.42
17.65
2 17.65
2 29.42
17.94
10.76
2 10.76
2 17.93
2 16.18
2 10.84
15.54
29.49
2 16.18
2 10.84
15.54
29.49
2.65
1.59
21.59
22.65
4.44
2.33
21.62
22.41
2 31.56
2 21.85
40.59
94.71
15.22
9.33
29.97
2 16.99
1.25
0.86
21.56
23.55
20.51
20.27
0.22
0.35

26.97
2 16.59
2 23.71

t*1 days

with respect to the methods (ranking index, Euclidean

distance). Here, we have investigated the crisp model, using
strong and weak fuzzy cases of the ranking index method
and Euclidean distance method, respectively. Then,
considering the general intention of the DM, we have
tabulated a dichotomous data set (see Tables 6 8). We have
calculated the phi-coefficients for strong fuzziness and
weak fuzziness, respectively, in the following cases:

(I) the degree of correlation for applicability of the

ranking index I(Z) and the Euclidean distance d
(Z) methods in a fuzzy environment is poor
(0.089),
(II) the correlation between order quantities q and
shortage quantities S from I(Z) is 2 0.0403,
(III) the correlation between order quantities q and
shortage quantities S from d(Z) is 0.0446.

(i) the ranking index I(Z) and Euclidean distance d(Z)

of the objective function,
(ii) the order quantities and shortage quantities from I
(Z),
(iii) the order quantities and shortage quantities under d
(Z),

Since case II provides negative correlation between q and S,

the best method is the ranking index method. Moreover, the
best result can be obtained from weak fuzzy numbers. That
is Minimize Z $164.36 at q * 182.912 and
S* 97.074. Finally, we may conclude with a few words:
any linguistic output from a decision maker may convey
some vague information that cannot be avoided in a
managerial system. To handle such situations, fuzzy sets

and we have observed that

International Journal of Management Science and Engineering Management

play an important role and, of course, phi-coefficients are an
essential part of them because of the dichotomous nature of
the variables. They have been used for decades in behavioral
science, conflict management problems, psychological
statistics, educational statistics, etc. Moreover, in a single
statement, we can say that decisions under several methods
tell us paper-to-paper negotiation, but decisions under phicoefficients tell us face-to-face negotiation in any kind of
management problems. This is a new approach beyond the
traditional one.

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Scope for future work

In practice, this model can be extended to hexagon fuzzy
or step order fuzzy numbers with appropriate applications
of fuzzy linguistic variables for any kind of decision
making problem in inventory management. Moreover,
using fuzzy measure theory, the model can be verified with
several other ranking index methods available in the
existing literature.

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International Journal of Management Science and Engineering Management

11

Appendix A
We shall discuss the following integrals one by one.
Case 1: For region R1, x varies from a1i to a2i and y varies from 0 to w1(x 2 a1i)/(a2i a1i). The integral values are

dx dy
R1

x dx dy
R1

x
a1i

>
>
a1i >
>
:


8 
x2a
>
w1i a a1i
>
>
2i 1i
>

<

a2i


8 
x2a
>
w1i a a1i
>
>
2i
1i
a2i >

<

>
>
>
>
:

9
>
>
>
>
=

a2i


x 2 a1i
w1i
a2i a1i ;
dx
dy dx w1i
>
a2i a1i
2
>
>
a1i
>
;

9
>
>
>
a2i
>


=

x 2 a1i
w1i  2
2a2i 2 a1i a2i 2 a21i
dy dx xw1i
dx
>
a2i a1i
6
>
>
a1i
>
;

A1

A2

and

Downloaded by [117.205.164.40] at 03:49 22 January 2015

a2i

y dx dy
R1

a1i


8 
x2a
>
w1i a a1i
>
>
2i 1i
>

<
>
>
>
>
:

9
>
>
>
>
=

a2i


1
x 2 a1i 2
w2
ydy dx
w21i
dx 1i a2i a1i :
>
2
a2i a1i
6
>
>
a1i
>
;

A3

Case II: For region R2, x varies from a2i to a3i and y varies from w1i to w1i (1 2 w1i)(x 2 a2i)/(a3i a2i). The integral values are
a3i

dx dy
R2

a2i



8
x2a
>
w1i 12w1i a a2i
>
>
3i 2i
>

<
>
>
>
>
:

9
>
>
>
>
=

dy dx
>
>
>
>
;

w1i


 9
8
x2a
>
>
w1i 12w1i a a2i
>
>
>
>
a3i >
>
3i 2i

<
=
x dx dy x
dy dx
>
>
R2
>
>
>
a2i >
w1i
>
>
:
;

a3i

1 2 w1i
a2i

x1 2 w1i
a2i


x 2 a2i
1 2 w1i  2
2a3i 2 a2i a3i 2 a22i
dx
6
a3i a2i

A4

a3i

x 2 a1i
1 2 w1i
a3i a2i ;
dx
2
a2i a1i

A5

and

y dx dy
R2



8
x2a
>
w1i 12w1i a a2i
>
>
a3i >
3i 2i
<
a2i

>
>
>
>
:

9
>
>
>
>
=
ydy dx
>
>
>
>
;

w1i

A6

a3i "

2

#
1
x 2 a2i
1 2 w1i 1 2w1i a3i a2i
2 x 2 a2i
dx
1 2 w1i
2w1i 1 2 w1i
:

a3i a2i
a3i a2i
2
6
a2i

Case III: For region R3, x varies from a3i to a4i, y varies from 1 to w2i (1 2 w2i)(a4i 2 x)/(a4i a3i), and

dx dy
R3

a4i

a3i

(we take positive value)



8
a 2x
>
w2i 12w2i a 4i a
>
>
a4i >
4i 3i
<
a3i

>
>
>
>
:

9
>
>
>
>
=
dy dx
>
>
>
>
;




a4i 2 x
1 2 w2i
1 2 w2i
dx 2
21 2 w2i 1 2 w2i
a4i a3i ~
a4i a3i ;
a4i a3i
2
2

A7

12

S.K. De and S.S. Sana


 9
8
a 2x
>
>
w2i 12w2i a 4i a
>
>
>
>
4i
3i
a4i >
>

=
<
x dx dy x
dy dx
>
>
R3
>
>
>
a3i >
1
>
>
;
:
a4i

a3i




a4i 2 x
x 21 2 w2i 1 2 w2i
dx
a4i a3i

 1 2 w2i  2

1 2 w2i  2
2a4i 2 a23i~ 2 a3i a4i
2a4i 2 a23i 2 a3i a4i
6
6

A8

(we take positive value) and

a4i

y dx dy
R3

a3i



8
a 2x
>
w2i 12w2i a 4i a
>
>
4i 3i
>

<
>
>
>
>
:

9
>
>
>
>
=
ydy dx
>
>
>
>
;

a3i

"

2 12

w22i


1 2 w2i

a2i

a4i 2 x
a4i a3i


#
a4i 2 x
dx
2w2i 1 2 w2i
a4i a3i

A9

1 2 w2i 2 ~ w2i a4i a3i 1 2 w2i 2 w2i a4i a3i

6
6

Downloaded by [117.205.164.40] at 03:49 22 January 2015

(we take positive value).

Case IV: For region R4, x varies from a4i to a5i, y varies from w2i(a5i 2 x)/(a5i a4i) to 0 and
8
9
>
>
>
>
>
>
a5i >
a5i 
>



0
<
=
a5i 2 x
w2i
w2i
a5i a4i ~
a5i a4i
dx 2
dxdy
dy dx 2 w2i
>
>
a

a
2
2
5i
4i
R4
> 
 >
>
a4i >
a4i
>
>
a
2x
:w2i 5i
;

A10

a5i a4i

(we take positive value),

8
9
>
>
>
>
>
>
a
0
5i
>
>

<

=
xdxdy x
dy dx
>
R4
> 
>
 >
>
a4i >
>
>
:w2i a5i 2x
;



a5i 2 x
dx
2 x w2i
a5i a4i
a5i

 w2i  2

w2i  2
a a5i a~ 4i 2 2a24i
a5i a5i a4i 2 2a24i A11
6 5i
6

a4i

a5i a4i

(we take positive value) and

8
>
>
>
>
<

9
>
>
>
a5i "
>

2 #

=
1
2 a5i 2 x
dx
ydxdy
w2i
ydy dx 2
>
>
2
a5i a4i
R4
> 
>

>
a4i >
a
>
>
4i
: w2i a5i 2x
;
a5i

a5i a4i

(we take positive value).

w22i
w2
a5i a4i ~ 2i a5i a4i
6
6

A12