Paper Title
CONSIGNMENT INVENTORY MODEL WITH FUZZY TRANSPORTATION COST
Abstract
Abstract - In today's era, Consignment Stock (CS) policy is the priority choice of several manufacturers among plenty of inventory methods, and the continuous changing obstacles bring about by manufacturing process and supply chain management have made enterprises pay more and more attention to this policy to respond. Buyers and suppliers have to confront the shared responsibility through the interaction of data and the management of potential risks for the purpose of the CS policy to be successfully implemented. The cost of holding the product will be transferred to the retailer by means of this model, because the manufacturer can reduce the cost of holding by sending the product directly to the retailer. As a consequence, retailers do not need to bear any potential risks before the product is sold. However, transportation cost of vendors are extremely unpredictable in a real business environment. This paper provides a workaround to calculate the overall expected cost and most appropriate quantity of the buyer's order under the consignment policy by using the symbolic distance method combined with the fuzzy transportation cost. The main objective of this model is to minimize the total annual joint cost of a single buyer and a single vendor of a single commodity. The model also assumes that the supplier's efficiency is fixed and does not take lead time into account.
Keywords - Consignment Stock, Fuzzy Annual Production, Inventory Model, Supply Chain.