A Fuzzy Optimization Model for Multi-Item Production Planning Problem in an Uncertain Environment

Abstract

In this chapter, we have formulated a multi-objective production planning model for a hardware firm. This firm produces different types of hardware locks and other items in its production run. The objectives of the firm aretominimize the production cost, minimize the inventory holding cost and maximize the net profit subject to theset of realistic constraints. In the past, the production planning problem of a similar type has been formulated with exact information where the input information is precisely known to the decision-maker. However, in most of the real-life situations, the input information is not precisely known. In such situations,fuzzy set theory playsa vital role in modelling of the problem where the input data have some vagueness.The proposed model of production planning also been formulated under fuzzy environment. The triangular fuzzy number has been used to present the vagueness in the input information. The equivalent crisp form of the fuzzy model has been obtained bytwo different types of defuzzificationapproaches namely ranking function and α–cut approach respectively. Henceforth, the formulated models under fuzzy environment havebeen solved by the fuzzy goal programming approach.