A Fuzzy-based Integrated Framework for Monitoring Stochastic Demand in a Supply Chain Environment

This paper develops a Fuzzy-based Integrated Framework (FIF) that responds to the risk of fluctuating demand in a supply chain environment. It is a hybrid framework based on the fuzzy based stochastic demand model and the integrated processes of supply chain in enterprise resource planning (ERP) environment. This proposed FIF can be used to adjust the rate of change of demand based on fuzzy system reasoning, supported by real time inputs of the specific parameters and control data using integrated supply chain processes/models in ERP system environment. Based on a cost effective approach, this framework minimizes the total cost comprising inventory and stock-out costs. Using a case study, we validate the proposed integrated framework in actual industrial settings and discuss the practical importance for supply chain management in responding to uncertainties inherited in the operational environment.