Abstract
This paper deals with a deterministic inventory model developed for deteriorating items having two separate storage facilities (owned and rented warehouses) due to limited capacity of the existing storage (owned warehouse) with linear time dependent demand (increasing) over a fixed finite time horizon. The model is formulated with infinite replenishment and the successive replenishment cycle lengths are in arithmetic progression. Partially backlogged shortages are allowed. The stocks of rented warehouse (RW) are transported to the owned warehouse (OW) in continuous release pattern. For this purpose, the model is formulated as a constrained non-linear mixed integer programming problem. For solving the problem, an advanced genetic algorithm (GA) has been developed. This advanced GA is based on ranking selection, elitism, whole arithmetic crossover and non-uniform mutation dependent on the age of the population. Our objective is to determine the optimal replenishment number, lot-size of two-warehouses (OW and RW) by maximizing the profit function. The model is illustrated with four numerical examples and sensitivity analyses of the optimal solution are performed with respect to different parameters.
Highlights
In the existing literature, it is found that the classical inventory models generally deal with a single storage facility
The value of the profit function for chromosome Vj (j =1,2, ..., population size (POPSIZE)) is taken as the fitness of Vjand it is denoted by eval (Vj).In the above mentioned algorithm, evaluation of P(t) in Step-4 and Step-10 in Algorithm – 1 is done by function subprogram
In the present day competitive marketing situation, when the area of existing warehouse (Owned warehouse, owned warehouse (OW)) in an important market place is relatively small, the inventory management authority is bounded to hire a separate warehouse on rental basis
Summary
It is found that the classical inventory models generally deal with a single storage facility. When an attractive price discount for bulk-purchase is available or the cost of procuring goods is higher than the other inventory related costs or there are some problems in frequent procurement or the demand of items is very high, management decides to purchase a huge quantity of items at a time. These items cannot be stored in the existing storage viz., the owned warehouse (OW) with limited capacity. For storing the excess items, one (sometimes more than one) additional warehouse is hired on a rental basis. The items of OW are transferred to OW in a continuous release pattern to meet the demand until the stock level in RW is emptied and the items of OW are used to satisfy the customer’s demand
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
