Two-warehouse fuzzy inventory model under the conditions of permissible delay in payments
Summary: In this paper, a two-warehouse inventory model under the conditions of permissible delay in payments in fuzzy environment is developed. A rented warehouse is used when the ordering quantity exceeds the limited capacity of the owned warehouse. During the permissible delay period, no interest is charged by the supplier, but beyond this period interest is charged under the terms and conditions agreed upon and, moreover, interest can be earned on the revenue received during the credit period. Here, we have discussed four different cases to represent realistic situations of market: (1) when the inventory system has both the warehouse facilities, (2) when the owned warehouse has large capacity to store the inventory, (3) when simple EOQ model of single storage system and (4) when one does not wish to take RW services and OW has unlimited capacity. Finally, numerical example is given to illustrate feasibility of the model.
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