An Entropic EOQ Inventory Control using Dynamic Programming

There are a variety of efficient approaches to solve crisp inventory models in operations Research. This paper presents an entropic version of an EOQ model with imperfect quality items. A model that uses Bellman and Zadeh’s approach to fuzzy dynamic programming is used. As a result, an entropy cost term is added to the classical inventory cost to form an entropic total inventory cost function. This provides an estimation of the hidden or difficult to estimate cost inventory systems that usually are the result of disorder (or entropy). A mathematical model is developed with numerical results presented and discussed.