In the changing scenario of market, inventory system have become
important for all researchers and fuzzy set theory mainly deals with quantitative
analysis of uncertainty and imprecision. In this paper the inventory system for
deteriorating items with price sensitive demand under fuzzy logic has been
developed. This system is allowed shortage which is completely backlogged.
Due to uncurtaining in the market fuzzy set theory is used to deal with the
imprecise data. Therefore demand rate, deterioration rate and holdings cost
taken as pentagonal fuzzy numbers and graded mean representation method
(GMRM) has been used to defuzzify the total inventory cost (TC) function
made from this model. The purpose of this work is to minimise the total
inventory cost. We have illustrated the model by numerical example along with
graphical illustration and sensitivity analysis is finally depicted to understand
this model based on real life scenario.