OPTIMAL INVENTORY DECISIONS FOR DETERIORATING ITEMS WITH ALL-UNITS DISCOUNT UNDER FUZZY ENVIRONMENT

Authors:

Dharti Arvadiya,Ajay S. Gor,

DOI NO:

https://doi.org/10.26782/jmcms.2024.07.00003

Keywords:

Deterioration,All-units discount,Graded mean integration method,Price dependent demand,Time dependent holding cost,Triangular fuzzy number,

Abstract

The proposed inventory model has been developed for deteriorating items subject to all-unit discount in a fuzzy environment. Considering demand as price dependent, holding cost depends on time, and purchase cost depends on order size. The inventory parameters, such as ordering cost, holding cost, and demand rate, are all represented as triangular fuzzy numbers to capture the uncertainty in the system. The objective of the model is to determine the optimal time length, selling price, and order quantity to maximize the total profit function. Numerical examples are carried out to validate the models. Sensitivity analysis is performed to check the effect of fuzzy parameters on profit function and decision variables to get further insights. Results stated that a fuzzy model works better than a crisp model, and an all-units discount policy helps in maximizing a retailer's profit. It allows for flexibility and adaptability, leading to a potential increase in revenue.

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