Dynamic Fuzzy Logic to Identify Safety Stock in Dairy Industries / Empirical Case Study
Riyadh Jamegh, AllaEldin H. Kassam, Sawsan Sabih · Annals of DAAAM for ... & proceedings of the ... International DAAAM Symposium · 2018
Safety stock (SS) optimization is considered an important element in supply chain inventory optimization especially in small and medium enterprises (SME).In this paper we employee dynamic fuzzy logic process as innovation step to identify safety stock level in dairy industries with objective of minimizing total cost and meet with customer requirements.The proposed model consisting of three main steps firstly, building of fuzzy set for each variable, secondly, identifying max values which represent universe of discourse of variables and identify daily input values of the variables, finally, Execution of proposed model in fuzzy logic tool embedded in Matlab software.The research works to address the problem of increasing storage and increase of holding cost by determining the ideal level of safety stock and this is one of the most important points that the search works.As traditional approaches, which is use statistical models in determining SS level always give poor results about SS level and these is the most important constraints of traditional approaches, therefore, in this paper we have employed advanced methods in solving this problem by employing one of the tools of soft computing (fuzzy logic) to control the levels of safety stock.The researcher tries to build robust and powerful fuzzy model which employee expert knowledge in problem solution.The recommended solution provided in this search demonstrates the validity of proposed model by noting the reduction in the level of safety stocks in real environment.