Abstract. In this paper, we developed fuzzy optimal ordering strategy in inventory model with deteriorating items. The retailer's optimal quantity was determined with deterioration at a constant rate. The objective of this paper is to maximize the retailer's total profit per unit time. Purchase and selling cost, ordering and fixed cost, inventory cost in warehouse and showroom are taken as fuzzy numbers. A numerical example is given to validate the model. Numerical example solved by using MATLAB software. Graded mean integration representation method is used to defuzzify the results.

Received: June 14, 2013

AMS Subject Classification: 03E72, 90B05

Key Words and Phrases: inventory cost, deterioration, triangular fuzzy number, defuzzification

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