An inventory model for non-instantaneous deteriorating items with variable holding cost under two-storage

Abstract

This paper presents a two warehouse inventory model for non-instantaneous deteriorating items under assumption that the inventory cost (including holding cost and deterioration cost) in rented warehouse (RW) is higher than those in owned warehouse (OW) due to better preservation facilities in RW. The demand and holding cost, both are taken variable and as linear increasing function of time. Shortages are allowed in the OW and completely backlogged at the next replenishment cycle. This paper mainly dealt with non-instantaneous deteriorating items with linear time dependent holding cost and demand where transportation cost from RW to OW has been incurred and is depended upon the amount of goods transported irrespective of time, distance from RW to OW and the capacity of vehicle used for transporting commodities.