A Neutrosophic EOQ Model with Demand-Dependent Order Price and Restricted Storage Area Using NSNLP and NSGP Methods
Keywords:
Neutrosophic sets; Economic Order Quantity (EOQ); Demand-dependent pricing; Storage constraints; Neutrosophic nonlinear programming (NSNLP); Neutrosophic geometric programming (NSGP); Inventory optimization; Uncertainty modelling.Abstract
In this study, a neutrosophic Economic Order Quantity (EOQ) model is developed to
effectively capture the indeterminacy and imprecision present in real-world inventory
systems. By incorporating neutrosophic logic which extends classical and fuzzy logic
through truth, indeterminacy, and falsity degrees—the model addresses uncertainty in both
demand and cost parameters. The model considers demand-dependent unit pricing and
restricted storage capacity, both are modelled as neutrosophic variables. Numerical
simulations using MATLAB show that the Neutrosophic Geometric Programming (NSGP)
method achieves the lowest total cost ($10,200), outperforming both Neutrosophic Nonlinear
Programming (NSNLP, $10,500) and traditional fuzzy EOQ ($11,000). The proposed
approach demonstrates superior adaptability to storage and cost variations, confirming its
robustness for uncertain inventory environments.
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