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Finance and Financial Management

Technological University Dublin

Series

1994

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Full-Text Articles in Business

Fuzzy Knowledge-Based Approach To Treating Uncertainty In Inventory Control, Dobrilla Petrovic, Edward Sweeney Jan 1994

Fuzzy Knowledge-Based Approach To Treating Uncertainty In Inventory Control, Dobrilla Petrovic, Edward Sweeney

Articles

Inventory control in complex manufacturing environments encounters various sources of uncertainity and imprecision. This paper presents one fuzzy knowledge-based approach to solving the problem of order quantity determination, in the presence of uncertain demand, lead time and actual inventory level. Uncertain data are represented by fuzzy numbers, and vaguely defined relations between them are modeled by fuzzy if-then rules. The proposed representation and inference mechanism are verified using a large numbers of examples. The results of three representative cases are summarized. Finally a comparison between the developed fuzzy knowledge-based and traditional, probabilistic approaches is discussed.