Analysis of two-warehouse effects on inventory models under preservation technology and ramp-type demand with complete and partial backlogging

Abstract

This article will introduce an inventory model for deteriorating items under a ramp-type demand rate. In the sequel, preservation technology has appeared to reduce the deterioration rate of deteriorating items. The deterioration rate is considered time-dependent. Due to ramp-type demand, retailers may face complete and partial backlogged shortages. We suggest the two-warehouse effect when a retailer faces a storage capacity problem. In this model, it would mean for them to borrow the rented warehouse and keep products left from their warehouse. The main objective of this model is to find the optimal decision variables, say cycle time, shortages time, and preservation technology cost. The mathematical formulation with solution procedures, relevant theorems, and algorithms has been developed. Some numerical illustrations will discuss to verify the optimality of the decision variables. We will graphically show the iterative scheme obtained by the solution method and the convexity of the optimal solution. The sensitivity analysis of numerical illustration will be discussed. At last, the managerial implication and conclusion will discuss.