A STUDY ON TWO WAREHOUSE INVENTORY MODEL WITHSTOCKDEPENDENT DEMAND AND SHORTAGES
Keywords:
Warehouse, Inventory, Stock dependent demand, Shortages, Lost sale, Deterioration.Abstract
Here in this paper an inventory model for deteriorating products with two warehouse storage capacity has beendeveloped. It is observed many times that the demand for any product vary with the stock level. Ahighstocklevel attracts the customers to buy more but it is true only up to a certain level of stock and after that thedemand becomes constant. Here a rented warehouse is used to stock the remaining quantity after fillingtheowned warehouse. The shortages are allowed in owned warehouse and occurring shortages are partiallybacklogged. The optimal cost of the system is illustrated with the help of a numerical example. The sensitivityanalysis of the system with respect to different associated parameters is also presented to check the feasibilityof the model.