Two-Storage Fuzzy Inventory System with Price Dependent Demand under Permissible Delay in Payment
Abstract
The present paper consist the study of two storage inventory system with price-dependent demand under permissible delay in payment both in crisp and fuzzy sense. In competitive situations, providing the facility of permission delay in payment, the supplier wants to overcome on its holding cost and attract the retailers towards price-sensitive demand and to procurement of more products. As the retailers want to buy more products then they feel the need of extra storage space. The rented storage system is considered to store the excess stock. The rented storage system provides better preserving facilities for the storing stock and has more charges than the owned storage system. The utilization of rented storage system becomes necessary for the retailer due to the limited capacity of its storage system. The present model consist the two-storage inventory system in which one is owned and other is rented. The objective of this study is to optimize the total inventory cost during a given replenishment cycle. The computational algorithms, numerical examples and graphical representations show the applicability of proposed inventory system. The computational work and graphical representation of various parameters is completed with the help of Mathematica 12 software. The study of sensitivity analysis is also given to explain the fluctuating outlines of various parameters.
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