An Optimal Reordering Inventory Policy for Deteriorating Products in Fuzzy Set Terminology

Abstract

This research paper provides a replenishment model for unpreserved products with consideration of the time value of money under the fuzzy situation. This mathematical model follows the discounted cash flow approach to provide inventory replenishment difficulty over a fixed planning horizon. In this model, the authors have shown that the total variable cost is minimized without backlogging under a fuzzy environment. Numerical examples are given to reveal the applicability of the model with respect to the different parameters of the system. This model is developed for uncertain business houses where the businessman is totally dependent on the arrival of the order and the customer both; hence, we provided a solution in this paper for those types of business houses.