A partial backlogging inventory model for decaying items: Considering stock and price dependent consumption rate in fuzzy environment

Abstract

In this article, an inventory model is developed to deal with the impreciseness present in the market demand and the various cost parameters. The presented model is developed in crisp and fuzzy environments. Signed distance method is used for defuzzification. In most of the classical models, constant demand rate is considered. But in practice purchasing deeds of the customers is affected by the selling price and inventory level. In this study, we have considered demand rate as a function of stock-level and selling price. Two parameters Weibull distribution deterioration is considered. It is assumed that shortages are allowed and are partially backordered with the time dependent backlogging rate. A numerical experiment is provided to illustrate the problem. Sensitivity analysis of the optimal solution with respect to the changes in the value of the system parameters is also discussed.