Abstract
In this paper, a crisp leakage inventory model is extended to fuzzy environment. Leakage is an unavoidable phenomenon in an inventory system involving liquid or gaseous stock. The rate of leakage and the rate of demand cannot be considered as a fixed quantity through out the functioning of the system. Fuzzy set theory is applied to deal these variabilities and uncertainties of the situation. Triangular fuzzy number is considered for the process of fuzzification. The concept of α-cut and fuzzy intervals is used for the signed distance method of defuzzification. Numerical example is provided to support the result of the proposed fuzzy model.
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