Three warehouse inventory model for non-instantaneous deteriorating items with quadratic demand, time-varying holding costs and backlogging over finite time horizon

Abstract

This paper presents a novel sustainable inventory model tailored for non-instantaneous deteriorating items, incorporating quadratic demand and time-dependent holding costs. Notably, the model accounts for shortages over a finite time horizon, simulating real-world scenarios. The inventory management the strategy involves distributing products across three warehouses: the Own Warehouse (OW) and two Rental Warehouses (RW), with applications spanning supermarkets, bakeries, malls, and floral businesses. The primary objective is minimizing total costs to enhance consumer satisfaction and bolster profits. The theoretical framework is substantiated through numerical examples, focusing on the critical finding regarding optimal total cost. A special methodology is employed to balance inventory dynamics amidst various warehouses, optimizing resource allocation and mitigating shortages. Furthermore, a comprehensive sensitivity analysis using MATLAB Software unveils the repercussions of parameter modifications, providing valuable insights for decision-makers in diverse industrial settings.