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This study develops an inventory model to determine ordering policy for   deteriorating items with constant demand rate under inflationary condition   over a fixed planning horizon. Shortages are allowed and are partially   backlogged. In today’s wobbling economy, especially for long term investment,   the effects of inflation cannot be disregarded as uncertainty about future   inflation may influence the ordering policy. Therefore, in this paper a fuzzy   model is developed that fuzzify the inflation rate, discount rate,   deterioration rate, and backlogging parameter by using triangular fuzzy   numbers to represent the uncertainty. For Defuzzification, the well known   signed distance method is employed to find the total profit over the planning   horizon. The objective of the study is to derive the optimal number of cycles   and their optimal length so to maximize the net present value of the total   profit over a fixed planning horizon. The necessary and sufficient conditions   for an optimal solution are characterized. An algorithm is proposed to find   the optimal solution. Finally, the proposed model has been validated with   numerical example. Sensitivity analysis has been performed to study the   impact of various parameters on the optimal solution, and some important   managerial implications are presented

Optimal replenishment policy for fuzzy inventory model with deteriorating items and allowable shortages under inflationary conditions