Title: Inclusion of two-warehouse production prototype for deteriorating inventory items in payments
Authors: Nirakar Niranjan Sethy; Nini Maharana; Ameeya Kumar Nayak; S. Swayamjyoti
Addresses: Department of Mathematics, Ravenshaw University, Cuttack-3, Odisha, 753003, India ' Department of Mathematics, Ravenshaw University, Cuttack-3, Odisha, 753003, India ' Department of Mathematics, IIT Roorkee, Uttarakhand, 247667, India ' School of Minerals, Metallurgical and Materials Engineering, Indian Institute of Technology (IIT) Bhubaneswar, Bhubaneswar, 752050, India
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.
Keywords: inventory management; two-ware house; replenishment strategies; sensitivity analysis.
International Journal of Inventory Research, 2020 Vol.5 No.4, pp.318 - 338
Received: 21 Feb 2019
Accepted: 19 Jun 2019
Published online: 16 Sep 2020 *