A replenishment policy for items with finite production rate and fuzzy deterioration rate

In order to solve the economic production quantity (EPQ) inventory model, we always consider the deterioration rate as a constant quantity. But in the real situation, the deterioration rate will have little disturbances from the actual constant value. Therefore, we have developed an EPQ inventory model with fuzzy deterioration rate and finite production rate. The effect on the loss in production quantity due to faulty/aged machine has also been considered. The methodology for obtaining the optimum value of fuzzy total cost is also derived and the solution procedure is explained with one numerical example. To study the effect of changes in the system parameters on the decision variables, a sensitivity analysis is carried out by one numerical example.