Deterioration and its Uncertainty in Inventory Systems

Deterioration cannot be avoided in business scenarios. Deterioration is defined as change, damage, decay, spoilage obsolescence and loss of utility or loss of original value in a commodity that results in the decreasing usefulness from the original one product. Normally inventory models of deteriorating items, such as food products, vegetables, etc. involve imprecise parameters, like imprecise inventory costs, fuzzy storage area, fuzzy budget allocation, etc. In this paper, it is observed that time to time different EOQ models have been developed for deteriorating items for fixed deterioration rate in fuzzy environment, along with the models with fuzzy deterioration rate. Fuzzy set theory which is primarily concerned with how to quantitatively deal with imprecision and uncertainty, is an important tool used by the decision makers in modelling real-world problems. The present study investigates different fuzzy economic order quantity models for deteriorating items. Fuzziness is applied by allowing the cost components (holding cost, deterioration, shortage cost, etc) to be imprecise; also considering the uncertainty of several other parameters which are represented by different fuzzy numbers.