Ordering lot-sizing under uncertain attrition rate and uncertain demand condition

The inventory management models have wide applications in the real world. However, in real life, because of the influence of all kinds factors, the application of classic EOQ model does not meet the realistic requisition. In this paper we regard the attrition rate and demand as fuzzy number at the same time, the sale price of product is divided into two parts, i.e., the sale price of good product than that of the partial defective product. An inventory model which makes the total profits maximal is constructed, we can obtain the optimal ordering lot-sizing using triangle fuzzy numbers and the method of the sign distance and the optimal theory. Finally, the model analysis and examples are given. Through the analysis of model, we find the advantage of the fuzzy inventory model lies in itself uncertainty. From the analysis of data, the fuzzy inventory model can reflect the fact circumstance than the classic inventory model.