Fuzzy Inventory Model for Deteriorating Items under Two-Level Permissible Delay in Payments

Most of the inventory models under delay in payments only considered the relationship between the manufacturer and the retailer. However, in practice, the retailer also provides the customer with the credit period to stimulate demand. A three-echelon supply chain system with one manufacturer, one retailer and one customer is presented in this paper. From the perspective of the retailer, fuzzy inventory problem for deteriorating items with credit-linked demand and deteriorate rate under permissible delay in payments are investigated in the crisp and fuzzy environment. And the fuzzy model is transformed to the crisp model by employing the signed distance method. The optimal policies are derived and analyzed. Theoretical analysis reveals the relation between the fuzzy and classical inventory models under delay in payments.