(Q, R) inventory model with service level constraint and variable lead time in fuzzy-stochastic environment

In today's global marketplace, individual firms do not compete as independent entities rather as an integral part of a supply chain. Uncertainty is the main attribute in managing the supply chains. Accordingly, we develop a (Q, R) inventory model with service level constraint and variable lead-time in fuzzy-stochastic environment. In addition, the triangular fuzzy numbers counts upon lead-time are used to construct fuzzy-stochastic lead-time demand. Using credibility criterion, the expected shortages are calculated. Without loss of generality, we assume that all the observed values of the fuzzy random variable, representing the demand are triangular fuzzy numbers. Consequently, the value of total expected cost in the fuzzy sense is derived using the expected value criterion or credibility criterion. To determine an optimal policy, a numerical technique is presented and the results are analyzed using scan and zoom for constraint optimization. Finally, in order to demonstrate the accuracy and effectiveness of the proposed model, numerical example and sensitivity analysis are also included