Determining optimal selling price and the economic order quantity comparing crisp and fuzzy number costs

In this paper, an inventory model for deteriorating items with time and price sensitive demand is developed. Deterioration rate is assumed to follow Weibull distribution with known parameter. In the real world, Conditions of uncertainty costs have a direct impact on corporate profits. Therefore in this paper costs is considered as fuzzy numbers. The purpose of this paper is to find the optimal selling price and the economic order quantity simultaneously that maximizes profits for firm. A solution procedure is found to determine the optimal decisions and a numerical example is solved to endorse the solution procedure. Finally, sensitivity analysis of the optimal solution with respect to major parameters is carried out to obtain some managerial results.