Abstract
This paper is concerned with the integrated single vendor-buyer inventory model. Recently, most of the publications assume that the opportunity cost is crisp. However, in practice, there are many uncertain factors in real world. So we mathematical model that more closely conform to actual inventory and respond to the factors that contribute to inventory costs, the model must be extended or altered. The goal of this paper is to find the optimal strategy for this model with a price-sensitive market demand rate and adjustable production rate under the condition of trade credit in fuzzy capital opportunity cost. In this model, we could drive the corresponding optimal solution that determine the buyer’s optimal retail price, order quantity and the numbers of shipments per production run from the vendor to buyer. Numerical examples are included to illustrate the procedure of the algorithm.
Published Version
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