Title: Two-warehouse fuzzy inventory model under the conditions of permissible delay in payments

Authors: S.R. Singh, Neeraj Kumar, Rachna Kumari

Addresses: Department of Mathematics, D.N. College, Meerut (UP), India. ' Department of Applied Science, IIMT Engineering College, Meerut (UP), India. ' Department of Mathematics, Meerut College, Meerut (UP), India

Abstract: In this paper, a two-warehouse inventory model under the conditions of permissible delay in payments in fuzzy environment is developed. A rented warehouse is used when the ordering quantity exceeds the limited capacity of the owned warehouse. During the permissible delay period, no interest is charged by the supplier, but beyond this period interest is charged under the terms and conditions agreed upon and, moreover, interest can be earned on the revenue received during the credit period. Here, we have discussed four different cases to represent realistic situations of market: (1) when the inventory system has both the warehouse facilities, (2) when the owned warehouse has large capacity to store the inventory, (3) when simple EOQ model of single storage system and (4) when one does not wish to take RW services and OW has unlimited capacity. Finally, numerical example is given to illustrate feasibility of the model.

Keywords: inventory modelling; payment delays; two-warehouse systems; permissible delay; fuzzy environment.

DOI: 10.1504/IJOR.2011.040329

International Journal of Operational Research, 2011 Vol.11 No.1, pp.78 - 99

Published online: 14 Feb 2015 *

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