An Inventory Control Model with Price-Demand Relationship in a Fuzzy Environment

This paper deals with the problem of determining the retailer's optimal price and order quantity simultaneously when both holding cost and ordering cost are fuzzy numbers. The fuzzy model under the fuzzy arithmetical operations of Function Principle is proposed. The final purpose is to find optimal price and order quantity at regular replenishment time and before regular replenishment by using Graded Mean Integration Representation method for defuzzifing fuzzy Lagrangian function. Finally, numerical examples are provided to illustrate the solution procedure and concluding remarks are given