This paper develops a production, recycling-disposal inventory problem over a finite time horizon. The production and recycling process are performed in separate plants which are located very near to the market. The products are continuously transferred to the market. Here, the dynamic demand is satisfied by production and recycling. Recycling products can be used as new products which are sold again in the market. The rate of production, recycling and disposal are assumed to be function of time. The setup cost, idle cost and environment pollution recovery cost for production-recycling system in industry are also included. Model is formulated using fuzzy differential equation. Two different approaches are used in this model as: 1) modified graded mean integration value (MGMIV); 2) fuzzy preference ordering of intervals (FPOI). A genetic algorithm with binary mode representation, roulette wheel selection and random mutation process are applied. The optimum results are presented in tabular form and graphically.