An imprecise-inventory model with PEND and SEND policy

A continuous review economic order quantity (EOQ) model (with shortage) is modelled here. The inventory cost parameters are imprecise in nature. The model is developed for Partially Enforced Delay (PEND) and Strictly Enforced Delay (SEND) policies with lead time crashing cost. Here demand of the item is a linear function of selling price and usable lead time. For each policy, a set-up cost reduction technique has been applied to the model. Moreover, a statistical t-test has been used to compare the policies. We also present some numerical examples, sensitivity analysis and their discussions to stabilise the model.