A Two-Warehouse Inventory System with Time-Dependent Demand and Preservation Technology

Abstract

Because of rapid environmental changes in current worldwide society, preserving technique is becoming increasingly crucial. With the aim to examine this idea, we created a model for two-warehouse inventory system that incorporates preservation technique investments. The model considers time as a linear function representing the rate of demand. Time-dependent demand is a common feature in many industries, where demand fluctuates over time due to various factors such as seasonality and market trends. The stock is kept in the restricted storage area (OW) and other warehouse (rented) is utilized for keep any excess stock that exceeds the OW's storage limit. The stock in RW is consumed first, followed by the stock in OW, as the cost of holding of the rented warehouse (RW) is more than that of the owned warehouse (OW). This paper does not allow for shortages. We use numerical simulations to illustrate the effectiveness of our proposed model under various parameters.