Effect of Rented Warehouses for Deteriorating Items Under Stock Dependent Demand, Partial Backlogging

Abstract

Abstract In the area of two warehouses-based inventory models, various study has been carried out, authors presented their models under different parameters and environmental conditions. In most of the study, it can be seen that one warehouse assumed as own warehouse and other assumed as rented. Due to different facility and conditions both the warehouses have different rate of demand and deterioration along with different storage capacity. Shilpi et al. [2019], has developed an inventory model by considering both the warehouses as ranted. It was also assumed in the study that both warehouses having the same capacity. In addition, it has been also assumed that the items in the second ranted warehouse start decaying after some time whereas the items in the first warehouse used first to meet the demand of the customers. After critically reviewed the model by Shilpi et al. [2019], it can be observed that the storage techniques of items need to be further explored, as model used the items from first warehouse to satisfy the demand of the customers wares the items whose deterioration about to start has been stored in the second warehouse. This concept of storage has to be change, as such items in the second warehouse totally deteriorated till their turn comes up. Keeping this fact in mind, we have developed an inventory model based on two different ranted warehouses for deteriorated items whose rate of deterioration is not so much high but after a very short of time these items start decaying. According to the current model, the demand of the customers has been satisfied from the first warehouse, also to avoid deterioration in the second warehouse, we have to transfer such items whose deterioration about to start from second warehouse to first ranted warehouse so that we can avoid the deterioration of the items. In the current model we have assumed both the warehouses as rented which is suitable for the manufacturer whose product demand is very high and space is not much enough. It is obvious that the demand for the items in the stock increases due to stock up to a certain level. In the model the demand for the first warehouse is assumed as stock dependent. When we have extra stock the second warehouse used for the products and we have also assumed that the demand has becomes constant. The model is also instigated under sensitivity analysis and a brief numerical example with real data has been illustrated.