A two warehouse inventory model with non- instantaneous deterioration and partial backlogging

Abstract

In this article we have studied the two- warehouse inventory problem with limited storage capacity of owned warehouse (OW).If Inventory level exceeds the storage capacity of owned warehouse (OW) then organization hires a rented warehouse (RW) at high holding cost than holding cost of owned warehouse (OW). We have developed an inventory model for deteriorating items with non- instantaneous deterioration rate and stock dependent demand. Partially backlogged shortages are allowed with time dependent backlogging rate and the whole study is done under the effect of inflation. Main objective of this paper is to find optimal value of total cost. Numerical illustrations and sensitivity analysis are given at the end of this article.