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A fuzzy inventory model is proposed to maximize the profit in a two stage supply chain model. In this paper joint total profit of both buyer and vendor are calculated. Shortage for the buyer is allowed and it is completely backlogged. Number of shipments, selling price and order quantity are taken as decision variables. Graded mean integration representation method is applied for defuzzification. Sensitivity analysis is carried out using the numerical example.

An Inventory Model for Solving Two Stage Supply Chain using Fuzzy Costs with Shortage