Fuzzy EOQ models for deterioration items under discounted cash flow approach when supplier credits are linked to order quantity

The article deals with a fuzzy inventory model for deteriorating items under a situation in which a supplier offers the purchaser some credit, proportional to the ordered quantity by purchaser. Shortages are not allowed. The effects of the inflation rate on the purchase price, ordering price and holding price, deterioration of units and permissible delay in payments are discussed in this article. A mathematical formulation is developed when inventory units are subject to fuzzy deterioration under inflation when the supplier offers a permissible delay to the purchaser if the order quantity is greater than or equal to a quantity which is specified. An optimal solution is obtained and algorithm is also given for finding the optimal order quantity and replenishment time, which gives the minimisation of the total cost of an inventory system in four different cases. The article concluded with a numerical example to illustrate the theoretical results where interdependence of parameter is studied for the optimal solution.