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Article history: Received 10 January 2010 Received in revised form 22 June 2010 Accepted 24 June 2010 Available online 25 June 2010 This paper presents two models, a periodic review model and a continuous review inventory model with fuzzy setup cost, holding cost and shortage cost. We use two methods in the name of signed distance and possibilistic mean value to defuzzify. Also we consider the lead time demand and the lead-time plus one period’s demand as random variables. To validate the models and the solution procedures we apply them to a transformer manufacturing, 'Iran transfo', company. Furthermore we design a decision support system which can be used for efficient evaluation of the proposed models in fuzzy environment. © 2010 Growing Science Ltd. All rights reserved.

Periodic and continuous inventory models in the presence of fuzzy costs