A volume flexible two-warehouse model with fluctuating demand and holding cost under inflation

Abstract

This article develops a two-warehouse inventory model for decaying items under a volume flexible production system. The variable demand rate is taken into consideration. Unit production cost is considered to be dependent on production rate, tool cost and dye cost. The own warehouse is taken of fixed capacity. The objective of this study is to determine the optimal schedule, for this purpose solution procedure is provided. A numerical assessment with sensitivity of different system parameters is also given to illustrate the concept of the model.