Entropic Economic Order Quantity Model for Items with Imperfect Quality Considering Constant Rate of Deterioration under Fuzzy Inflationary Conditions

It was suggested in 2004 by some researchers that it might be possible to improve production systems performance by applying the first and second laws of thermodynamics to reduce system entropy. Then these laws were used to modify the economic order quantity (EOQ) model to derive an equivalent entropic order quantity (EnOQ). Moreover the political instability or uncertainty of a country (as well as the whole world) leads to a much more unstable situation in the present world economy. Thus, changes in inflation takeplace, and it is needed to consider uncertain inflation rate. In this paper we extend the EnOQ model by considering deteriorating items with imperfect quality and price dependent demand. We also assume fuzzy inflation and discount rates. A mathematical model is developed to determine the number of

Keywords:

Inventory , Price dependent demand , Fuzzy inflation , Imperfect items , Thermodynamics laws