Two levels of storage model for deteriorating items, stock dependent demand and partial backlogging with both rented warehouses

Abstract

In this paper an inventory model for deteriorating items with two warehouses has been developed, where both the warehouses considered are rented. The demand rate for both the warehouses is different. Since the demand for the products increases due to stock up to a certain level and after that it becomes constant. In this model it is assumed that the demand in first warehouse is stock dependent and after that when the extra stock is filled in second warehouse the demand rate becomes constant for that. Due to different storage conditions the deterioration rate is also different in both the warehouse. A numerical example and sensitivity analysis is also presented to illustrate the study. The main objective of this paper is to find out the optimal total cost of the system.