A Fuzzy Inventory Model for Deteriorating Items in a Pharmaceutical Industry with Shortages and Partial Backlogging

Abstract

A fuzzy inventory model for deteriorating items was proposed. The rate of deterioration was assumed to be time dependent and followed a three-parameter Weibull distribution. The demand rate is considered to be price dependent, shortages are allowed, and are partially backlogged. A crisp model was first developed, and thereafter, the ordering, holding, deterioration, shortage, and lost sale costs and other parameters were assumed to be triangular fuzzy numbers. The graded Mean Integration Representation, Signed Distance and Centroid methods were applied to defuzzify the total average cost function, and the results were compared.