Inclusion of two-warehouse production prototype for deteriorating inventory items in payments. (16th September 2020)

• Record Type: Journal Article
• Authors: Sethy, Nirakar Niranjan; Maharana, Nini; Nayak, Ameeya Kumar; Swayamjyoti, S.
• Is Part Of: International journal of inventory research. Volume 5:Number 4(2020)
• Page Start: 318
• Page End: 338
• Publication Date: 2020-09-16
• Subjects: inventory management -- two-ware house -- replenishment strategies -- sensitivity analysis; Inventories -- Periodicals; Inventories -- Mathematical models -- Periodicals; Inventory control -- Periodicals; 658.787
• Languages: English
• ISSNs: 1746-6962

Abstract

In this study an inventory model is proposed for deteriorating items considering two separate warehouses, as own warehouse (OW) of finite dimension and the rented warehouse (RW) for keeping the extra elements higher than the specified accommodation of the OW in practice. A lower deterioration rate is provided by the RW compared to OW due to its better preserving amenity. Also, the holding cost per unit in OW is lower compared to RW. In this paper an inventory model is considered for deteriorating items with inclusion of a two-warehouse management with linear demand rate and delay in payment. The objective of this work is to obtain the best fit replenishment strategies with minimisation of the total inventory cost. Numerical experiments are conducted with the developed mathematical model considering various parameters such as order, units and year. A sensitivity analysis is made to obtain optimal solutions with the change of parametric values with time.