Two-warehouse inventory models for deteriorating items with shortages under inflation

Abstract In this paper, the two-warehouse inventory problem for deteriorating items with constant demand rate and shortages under inflation is considered. In contrast to the traditional deterministic two-warehouse inventory model with shortages at the end of each replenishment cycle, an alternative model in which each cycle begins with shortages and ends without shortages is proposed here. The optimal solution not only exists but also is unique. Comparing these two two-warehouse inventory models, the study shows that the proposed model is less expensive to operate than the traditional one in the case of the inflation rate is greater than zero. Hence, under the consideration of inflationary effect, the proposed model is less expensive. Finally, some numerical examples for illustration are provided.

[1]  J. Buzacott.  Economic Order Quantities with Inflation , 1975 .

[2]  A. Goswami,et al.  An Economic Order Quantity Model for Items with Two Levels of Storage for a Linear Trend in Demand , 1992 .

[3]  M. Hariga.  Optimal EOQ Models for Deteriorating Items with Time-Varying Demand , 1996 .

[4]  Manoranjan Maiti,et al.  A two warehouse inventory model for deteriorating items with a linear trend in demand and shortages , 1998, J. Oper. Res. Soc..

[5]  R. S. Sachan.  On (T, Si) Policy Inventory Model for Deteriorating Items with Time Proportional Demand , 1984 .

[6]  A. Goswami,et al.  An EOQ Model for Deteriorating Items with Linear Time-dependent Demand Rate and Shortages under Inflation and Time Discounting , 1995 .

[7]  Maw-Sheng Chern,et al.  Deterministic inventory lot-size models under inflation with shortages and deterioration for fluctuating demand , 2001 .

[8]  S. K. Goyal,et al.  Recent trends in modeling of deteriorating inventory , 2001, Eur. J. Oper. Res..

[9]  U. Dave,et al.  (T, Si) Policy Inventory Model for Deteriorating Items with Time Proportional Demand , 1981 .

[10]  R. Misra.  A note on optimal inventory management under inflation , 1979 .

[11]  H. Bierman,et al.  INVENTORY DECISIONS UNDER INFLATIONARY CONDITIONS , 1977 .

[12]  Lakdere Benkherouf,et al.  A deterministic order level inventory model for deteriorating items with two storage facilities , 1997 .

[13]  T P M Pakkala.  Two-Warehouse inventory models for deteriorating items , 1992 .

[14]  P. M. Ghare.  A model for an exponentially decaying inventory , 1963 .

[15]  J. A. C. C. Watson-Gandy.  Operations Research—A Managerial Emphasis , 1977 .

[16]  Maw-Sheng Chern,et al.  Deterministic lot-size inventory models with shortages and deterioration for fluctuating demand , 1999, Oper. Res. Lett..