A two warehouse inventory model with quadratic decreasing demand and time dependent holding cost

An inventory model with time dependent deterioration and quadratically decreasing demand rate under the two warehouses system is proposed. In market some constraints such as demand, deteriorating costs and holding costs fluctuate with their true values. So, the constraints are not precise to be fixed. Solving these sorts of uncertainties we assumed in this paper quadratic decreasing demand rate, linear holding costs, linear deteriorations are assumed in the both warehouses. Finally, we determined the optimum inventory cost and optimum inventory level. Numerical example is presented to exemplify the inventory model and shows the sensitivity effects of parameters on the optimal solution.

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