@cauverycollege.ac.in
ASSISTANT PROFESSOR OF MATHEMATICS
Cauvery College for women Autonomous
Abstract. Trade Credit is an important service in modern business operation. Therefore to incorporate the concept of vendor-buyer integra- tion and ordersize, dependent trade credit, we present a stylized model to determine the optimal strategy for an integrate vendor-buyer inven- tory system under the condition of trade credit. This paper develops an approach to determine the optimum economic order quantity and total annual integrated cost for both vendor and buyer under the fuzzy arith- metical operations of function principle are proposed. A full fuzzy model is developed where the input parameters annual demand, production rate, set up cost, holding cost, purchase cost, transportation cost, order processing cost, carrying cost are fuzzy trapezoidal numbers. The optimal policy for the fuzzy production inventory model is determined using the algorithm of extension of the Lagrangean method for solving inequality constraint problem and graded mean integration method is used for def
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