Integrated Inventory Model with Fuzzy Interest Rate and Dependent Crashing Cost is Polynomial

In the present day, inventory policy is an important part of the supply chain management, the associated inventory cost always has an influence on supply chain. due to the highly competitive environment, we need to adopt a suitable inventory policy to enhance the benefits of supply chain. Reducing lead time and the associated inventory cost is critically important issues in the supply chain. And, most previous studies did not consider that effect of time value. Hence, we develop an integrated inventory model with crashing cost and add the time value factor to solve real inventory problems, in order to meet the real situation in inventory problems, we also use the signed distance, a ranking approach for fuzzy numbers to estimate the interest rate. The purpose of this paper is to minimize the present value of the joint expected total cost on the fuzzy interest rate inventory model. Thus, we establish an algorithm to determine the optimal order quantity, the length of lead time and the number of lots which are delivered from the vendor to the buyer in the solution procedure. And a numerical example also provided here to illustrate the solution procedure.