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Two-warehouse inventory model for deteriorating items when demand is price sensitive

Author

Listed:
  • Chandra K. Jaggi
  • K.K. Aggarwal
  • Priyanka Verma

Abstract

The main objective of this article is to develop a two-warehouse inventory model for deteriorating items when demand is price sensitive. It is assumed that the units are transported under a bulk release pattern from Rented Warehouse to Own Warehouse and the deterioration rates of the items are different in the two warehouses. Further, the model jointly optimises the order quantity and selling price. Depending upon the optimal order quantity, decision is made whether to rent other warehouse. The optimal shipment policy is also provided if indeed the other warehouse is needed. The results have been validated with the help of a numerical example. Sensitivity analysis on the demand parameters is also performed.

Suggested Citation

  • Chandra K. Jaggi & K.K. Aggarwal & Priyanka Verma, 2010. "Two-warehouse inventory model for deteriorating items when demand is price sensitive," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 7(4), pages 530-551.
    • Handle: RePEc:ids:ijores:v:7:y:2010:i:4:p:530-551
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    Citations

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    Cited by:

    1. Manoranjan De & Barun Das & Manoranjan Maiti, 2016. "EPL models for complementary and substitute items under imperfect production process with promotional cost and selling price dependent demands," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 259-277, June.
    2. Majumder, P. & Bera, U.K. & Maiti, M., 2016. "An EPQ model for two-warehouse in unremitting release pattern with two-level trade credit period concerning both supplier and retailer," Applied Mathematics and Computation, Elsevier, vol. 274(C), pages 430-458.

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