A fuzzified production model with time varying demand under shortages and inflation

Abstract

We develop an inventory model with time-dependent demand rate and deterioration, allowing shortages. The production rate is assumed to be finite and proportional to the demand rate. The shortages are partially backlogged with timedependent rate. Inflation is also taken in this model. Inflation plays a very significant role in inventory policy.We developed the model in both fuzzy and crisp sense. The model is solved logically to obtain the optimal solution of the problem. It is then illustrated with the help of numerical examples. Sensitivity of the optimal solution with respect to changes in the values of the system parameters is also studied.