Fuzzy Inventory Modeling for Deteriorating Items with Varying Holding Cost Rate and Partially Backlogged Shortages

Abstract

This paper considers a two warehouse inventory model for deteriorating items with backorder in a fuzzy situation by employing triangular fuzzy number. A fully fuzzy model is developed where input cost parameters are fuzzified. Inventory cost(including holding cost and deterioration cost)in a rented warehouse is higher than cost in owned warehouse due to better preservation facilities in rented warehouse. The demand and holding cost, both are taken as linear function of cycle length. Shortages are allowed in the own warehouse only and a fraction of shortages inventory is backlogged during the next replenishment cycle .This paper mainly dealt with deteriorating items with time dependent demand and variable holding cost which is constant up to a fixed point of cycle length and after that it increases according to length of ordering cycle in rented warehouse only and remains constant owned warehouse. Transportation cost is taken to be negligible and goods are transported on the basis of bulk release pattern. A numerical example is presented to illustrate the model and sensitivity is performed for a parameter keeping rest unchanged.