Abstract: This research paper examines the development of two warehouse model under the influence of inflation and use of preservation technology for deteriorating goods. This model depends on the stock dependent demand. In this model, goods stored in a rented warehouse charged higher units holding cost as compare to the owned warehouse. Due to the higher holding cost on rented warehouse's goods, seller invests on preservation technology. Firstly, the inventor in the rented warehouse reaches to the level zero due to demand and deterioration and then the inventory in the owned warehouse reaches to level zero. When the inventory level reaches to zero then the model permits the fulfillment of the goods by using the backlogging depends on the time for the next cycle. This study also determines the retailer's optimal replenishment policy that minimizes total cost per unit time. Total cost function is also affected by the JIT setup Cost. In addition, the research done in this study demonstrates that an optimal solution exists and is unique. A numerical example is displayed for the development of the model and sensitivity analysis has been performed to identify the behavior of model. The results of this study provide managerial insights for enterprises that use a rented warehouse to minimize costs by coordinating lot sizes.
Keywords: Inventory, Two-Warehouse, JIT setup cost, Preservation Technology, Partial Backlogging, Deterioration, Shortage and Stock-dependent demand.
Title: EFFECT OF PRESERVATION TECHNOLOGY ON OPTIMISATION OF TWO WAREHOUSE INVENTORY MODEL FOR DETERIORATING ITEMS WITH STOCK DEPENDENT DEMAND UNDER INFLATION
Author: Anjali Harit, Anurag Sharma, S.R. Singh
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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