A Two-Warehouse Production Inventory Model with Variable Demand and Permissible Delay in Payment under Inflation
S, R. Singh1, Pinky Saxena2
1S.R.Singh, Department of Mathematics, D.N (P.G) College, Meerut, India.
2Pinky Saxena, Department of Mathematics, Krishna Institute of Engineering and Technology, Ghaziabad, India.
Manuscript received on October 28, 2013. | Revised Manuscript received on November 02, 2013. | Manuscript published on November 05, 2013. | PP: 30-35 | Volume-3 Issue-5, November 2013 . | Retrieval Number: E1861113513 /2013©BEIESP
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In this paper a two-warehouse production inventory model is developed for deteriorating items with variable demand .The effect of permissible delay in payment is considered under inflation. Since, the capacity of any warehouse is limited, it has to rent warehouse (R.W) for storing the excess units over the fixed capacity of the own warehouse (O.W). On the basis of this fact, we have developed a two-warehouse production inventory model for deteriorating items under inflation & permissible delay in payment. The objective of this study is to derive the retailer’s optimal replenishment policy that minimizes the total relevant inventory costs. The necessary and sufficient conditions for an optimal solution are characterized. An algorithm is developed to find the optimal solution. Finally, numerical examples are provided to illustrate the proposed model. Sensitivity analysis is made and some managerial inferences are presented.
Keywords: Inventory, Two-warehouse, Deterioration, Permissible delay in payment, Inflation.