On Reserve Money for a Fuzzy EOQ Model in an Inflationary Environment Under Supplier Credit

We propose to derive a deterministic inventory model for a time varying deterioration rate with an exponential fuzzy demand over a finite planning horizon in this study. We assume that the supplier offers a credit limit to the retailer during which there is no interest charged. However, the retailer has the reserve capital with him to make the payments at the beginning of the transaction, but he decides to take the benefit of the credit limit. Each cycle has shortages, which have been partially backlogged to suit present day competition in the market. Also, the whole study has been done in an inflationary environment using the Discounted Cash Flow (DCF) approach to impart economic feasibility to the model. Numerical examples have been presented with the help of lingo software.