Application of Fuzzy Programming with Recourse in Material Requirement Planning Problem

Material requirement planning (MRP) is a popular approach used in production processes for planning. Many forms of uncertainty in practice affect the production process and different approaches have been presented for MRP with uncertainty. In order to model MRP problem under fuzzy uncertainty, we present a fuzzy programming model with recourse based on credibility theory. We consider fuzzyvariables coefficients related to the market demand and theunit price of material on spot market. The objective value is minimizing the expected value of total material procurement cost. This proposed MRP problem belongs to an infinitedimensional optimization problem that cannot be solved directly and it is 0-1 mix integer program, neither linear nor convex, traditional optimization algorithms cannot be used to solve it. So to solve the presented MRP model, we design a hybrid algorithm which combines approximation approach (AA) and particle swarm optimization (PSO). We also present one numerical example to illustrate the effectiveness of the designed algorithm.