Optimal Inventory Policy for Newsboy Problem Based on Fuzzy Random Demand

In uncertain inventory management problem, the calculation of optimal order quantity often depends on the type of uncertain demand. In many cases, it is difficult to characterize the uncertain demand by using random variable or fuzzy variable. Based on fuzzy random expected value theory, an inventory optimization model with fuzzy random demand is built. In order to solve the optimal ordering quantity, we set up a fuzzy random demand newsboy model which makes the fuzzy random revenue maximum and give a method to solve it. A numeral example shows the method is feasible and effective. In addition, we analyze the total expected cost changes with the storage cost and shortage cost, which provides a further suggestion for corporate investment decision.