Title: Fuzzy EOQ models for deterioration items under discounted cash flow approach when supplier credits are linked to order quantity

Authors: Sarla Pareek; Vinti Dhaka

Addresses: Department of Mathematics and Statistics, Apaji Institute of Mathematical Sciences, Banasthali University, Rajasthan – 304002, India ' Department of Mathematics and Statistics, Apaji Institute of Mathematical Sciences, Banasthali University, Rajasthan – 304002, India

Abstract: The article deals with a fuzzy inventory model for deteriorating items under a situation in which a supplier offers the purchaser some credit, proportional to the ordered quantity by purchaser. Shortages are not allowed. The effects of the inflation rate on the purchase price, ordering price and holding price, deterioration of units and permissible delay in payments are discussed in this article. A mathematical formulation is developed when inventory units are subject to fuzzy deterioration under inflation when the supplier offers a permissible delay to the purchaser if the order quantity is greater than or equal to a quantity which is specified. An optimal solution is obtained and algorithm is also given for finding the optimal order quantity and replenishment time, which gives the minimisation of the total cost of an inventory system in four different cases. The article concluded with a numerical example to illustrate the theoretical results where interdependence of parameter is studied for the optimal solution.

Keywords: fuzzy EOQ; EOQ models; deteriorating items; discounted cash flow; supplier credits; order quantity; DCF; deterioration; inflation; triangular fuzzy numbers; graded mean representation; inventory modelling; economic order quantity; optimisation; replenishment time.

DOI: 10.1504/IJLSM.2015.065962

International Journal of Logistics Systems and Management, 2015 Vol.20 No.1, pp.24 - 41

Received: 11 May 2013
Accepted: 06 Sep 2013

Published online: 15 Apr 2015 *

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