International Journal of Applied Industrial Engineering, 1(2), 53-79, July-December 2012 53 Copyright © 2012, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. ABSTRACT In this paper, a fuzzy inventory model is formulated for deteriorating items with price dependent demand under the consideration of permissible delay in payment. A two parameter Weibull distribution is taken to represent the time to deterioration. Shortages are allowed and completely backlogged. For Fuzzifcation of the model, the demand rate, holding cost, unit purchase cost, deterioration rate, ordering cost, shortage cost, interest earn and interest paid are assumed to be triangular fuzzy numbers. As a result, the proft function will be derived in fuzzy sense in order to obtain the optimal stock-in period, cycle length and the selling price. The graded mean integration method is used to defuzzify the proft function. Then, to test the validity of the model a numerical example is considered and solved. Finally, to study the effect of changes of different parameters on the optimal solution i.e. average proft, order quantity, stock-in period, cycle length and selling price, sensitivity analysis are performed. A Fuzzy Inventory Model for Weibull Deteriorating Items with Price-Dependent Demand and Shortages under Permissible Delay in Payment Chandra K. Jaggi, Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi, New Delhi, Delhi, India Sarla Pareek, Centre for Mathematical Sciences, Banasthali University, Banasthali, Rajasthan, India Anuj Sharma, Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi, New Delhi, Delhi, India Nidhi, Centre for Mathematical Sciences, Banasthali University, Banasthali, Rajasthan, India Keywords: Graded Mean Integration Representation Method, Inventory, Price Dependent Demand, Shortages, Triangular Fuzzy Number, Weibull Deterioration DOI: 10.4018/ijaie.2012070105