The Optimization Model for Order Quantity Allocation with Fuzzy Demand and Price Discount

The vendor selection and order quantity allocation problem with fuzzy demand and price discount is formulated as a multi-objective mixed-integer fuzzy programming model. The proposed model has the following characteristics: deterministic and fuzz constraints, and the assumption of fuzzy demand and price discount are expressed by using constraint equations. According to the special features of the model, appropriate solution strategy is proposed. It involves three steps: (1) membership function for every fuzzy objective and constraint is set up; (2) by means of max-min operator, the multi-objective mixed-integer fuzzy programming model is converted into several equivalent single-objective linear programming model; (3) the optimal solution for order quantity allocation problem is derived based on two-phase approach. An application example was also given for testing the feasibility and effectiveness of the proposed method