An inventory model for multiple items assuming time-varying demands and limited storage

Abstract

AbstractA model for inventory systems with multiple products is studied. Demands of items are time-dependent and follow power patterns. Shortages are allowed and fully backlogged. For this inventory system, our findings provide the efficient inventory policy that helps decision-makers to obtain the initial inventory levels and the reorder points that maximize the profit per unit time. Moreover, when it is assumed that the warehouse used for the storage of products has a limited capacity, the optimal inventory policy is also developed. The model presented here extends some inventory systems studied by other authors. Numerical examples are introduced to illustrate the applicability of the theoretical results presented.