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An application of PSO in a two-warehouse inventory model for deteriorating item under permissible delay in payment with different inventory policies

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  • Bhunia, A.K.
  • Shaikh, Ali Akbar

Abstract

This paper deals with an alternative approach for a two-warehouse inventory model for single deteriorating item considering allowable delay in payments with two separate warehouses having different preserving facilities. Partially backlogged shortages are allowed with a rate dependent on the duration of waiting time up to the arrival of next lot. Here, two different types of inventory policies, viz. inventory follows shortage (IFS) and shortage follows inventory (SFI) have been considered. To formulate the model, different realistic scenarios and sub scenarios in each policy have been investigated. The corresponding problems have been formulated as non-linear constrained optimization problems and solved by different versions of PSO algorithm. Then, to illustrate the model as well as to test the performance of the PSO algorithm, four numerical examples have been solved and the computational results have been compared. Finally, to study the effect of changes of different parameters, sensitivity analyses have been carried out by changing one parameter at a time and keeping the others at their original values.

Suggested Citation

  • Bhunia, A.K. & Shaikh, Ali Akbar, 2015. "An application of PSO in a two-warehouse inventory model for deteriorating item under permissible delay in payment with different inventory policies," Applied Mathematics and Computation, Elsevier, vol. 256(C), pages 831-850.
    • Handle: RePEc:eee:apmaco:v:256:y:2015:i:c:p:831-850
    DOI: 10.1016/j.amc.2014.12.137
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    3. Mrudul Y. Jani & Heta A. Patel & Amrita Bhadoriya & Urmila Chaudhari & Mohamed Abbas & Malak S. Alqahtani, 2023. "Deterioration Control Decision Support System for the Retailer during Availability of Trade Credit and Shortages," Mathematics, MDPI, vol. 11(3), pages 1-27, January.
    4. A.K. Agrawal & A.A. Gupta & M.K. Vora, 2020. "Pricing and lot-sizing policies for products with demand under Veblen effect," Operations Management Research, Springer, vol. 13(1), pages 85-93, June.
    5. Mohsen Lashgari & Ata Allah Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.
    6. Mohsen Lashgari & Ata Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.
    7. Sunil Tiwari & Chandra K. Jaggi & Asoke Kumar Bhunia & Ali Akbar Shaikh & Mark Goh, 2017. "Two-warehouse inventory model for non-instantaneous deteriorating items with stock-dependent demand and inflation using particle swarm optimization," Annals of Operations Research, Springer, vol. 254(1), pages 401-423, July.
    8. Anil K. Agrawal & Amit Ambar Gupta & Manu K. Vora, 2021. "Optimal pricing and lot-sizing policies under promotional expense for some Veblen products," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 83-108, March.

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