Credit Financing in a Two-Warehouse Inventory Model with Fuzzy Deterioration and Weibull Demand

Abstract

In the inventory system, usually demand and deterioration rate consider as in deterministic form. But, in the practical situation, these rates are uncertain in nature. In this case, demand increases as the number of customer increases. Furthermore, there is some limitation with the storage space. So, for keeping the inventory, retailer has to need extra space or rent warehouse (RW) with unlimited capacity. RW has better preserving facilities for keeping products for long time without any deterioration. So, RW has higher holding cost as compared with OW holding cost. In this paper, demand considered as a Weibull and deterioration in fuzzy sense; here, the supplier give some time period to pay the amount to the customer which is known as one level permissible delay in payments. The main objective is to find the optimum solution by using triangular fuzzy number. Numerical example provides the optimal solution of crisp and fuzzy model and sensitivity analysis also carried on different parameters.