233 Copyright © 2018, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 14 DOI: 10.4018/978-1-5225-3232-3.ch014 ABSTRACT This chapter develops an economic order quantity model for deteriorating items with initial inspection, allowable shortage under the condition of permissible delay in payment by fuzzify the demand rate, deterioration rate and inspection parameter of non-defective parameter based on as triangular fuzzy numbers to ft the real word. The total fuzzy cost function has been defuzzifed using signed distance and centroid method. Comparison between these two methods has also been discussed. The validity of the model has been established with the help of a hypothetical numerical example. INTRODUCTION Since the development of the first economic order quantity (EOQ) and economic production quantity (EPQ) models, many manufacturing organizations widely used these basic models to manage their in- ventory processes. After that, many researchers have tried to improve and modify them through relaxing unrealistic assumptions such as considering varying demand, deterioration, backordering, trade credit, A Fuzzy EOQ Model for Deteriorating Items With Allowable Shortage and Inspection Under the Trade Credit Chandra K. Jaggi University of Delhi, India Bimal Kumar Mishra Birla Institute of Technology, India T. C. Panda Ravenshaw University, India