Abstract:
In this study, a two-warehouse inventory model with exponentially increasing trend in demand
involving different deterioration rates under permissible delay in payment has been studied. Here,
the scheduling period is assumed to be a variable. The objective of this study is to obtain the
condition when to rent a warehouse and the retailer’s optimal replenishment policy that minimizes
the total relevant cost. An effective algorithm is designed to obtain the optimal solution of the
proposed model. Numerical examples are provided to illustrate the application of the model.
Based on the numerical examples, we have concluded that the single warehouse model is less
expensive to operate than that of two warehouse model. Sensitivity analysis has been provided
and managerial implications are discussed.
Machine summary:
Uthayakumar b a Department of Mathematics, PSNA College of Engineering and Technology, Dindigul, Tamilnadu, India b Department of Mathematics, Gandhigram Rural Institute - Deemed University, Gandhigram, amilnadu, India Abstract In this study, a two-warehouse inventory model with exponentially increasing trend in demand involving different deterioration rates under permissible delay in payment has been studied.
Shah (2006) considered an inventory model for deteriorating items and time value of money under permissible delay in payments during a finite planning horizon.
Liang and Zhou (2011) discussed a two-warehouse inventory model for deteriorating items under conditionally permissible delay in payment.
A partial backlogging inventory model for deteriorating items with Weibull distribution and permissible delay in payments was developed by Dye (2001).
Hui-Ling (2013) considered a two-warehouse partially backlogging inventory model for deteriorating items with permissible delay in payment under inflation.
Bhunia, Ali Akbar Shaikh (2015) developed two-warehouse inventory model for single deteriorating items with permissible delay in payments under partial backlogging.
A multi-warehouse partial backlogging inventory model for deteriorating items under inflation when a delay in payment is permissible.
Optimal pricing and lot-sizing policies for an economic production quantity model with non-instantaneous deteriorating items, permissible delay in payments, customer returns, and inflation.
An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation-and selling price-dependent demand and customer returns.
A two-warehouse production model for deteriorating inventory items with time-dependent demands, European Journal of Operational Research, 194, 700-710.
An inventory model with deteriorating items under inflation when a delay in payment is permissible, International Journal of Production Economics, 63, 207-214.