Abstract
This paper deals with non-instantaneous deteriorating items that have a shelf life and start deteriorating after a time lag. Under some special conditions, viz., attractive price discount, low storage cost, high demand, etc; the procurement of a large amount of such items at a time is decided. Because of the fixed capacity of the own warehouse (OW), a rented warehouse (RW) is used to store the excess quantity. Further, to enhance the usefulness of merchandise or goods, the first-in first-out (FIFO) dispatch policy is followed. In the present paper, a two-warehouse inventory model for non-instantaneous deteriorating items is developed under FIFO dispatch policy; shortages at OW are also allowed. The solution procedure has been illustrated with the help of a numerical example and a comprehensive sensitivity analysis is considered. Jaggi and Verma's (2010a) two-warehouse LIFO model with non-instantaneous deterioration is also compared with the proposed FIFO model.
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