IDEAS home Printed from https://ideas.repec.org/a/ids/ijpman/v3y2010i1p54-71.html
   My bibliography  Save this article

Two-warehouse inventory model for deteriorating items with linear trend in demand and shortages under inflationary conditions

Author

Listed:
  • Chandra K. Jaggi
  • Priyanka Verma

Abstract

Inflation plays a very interesting and significant role: it increases the cost of goods. To safeguard from the rising prices, during the inflation regime, the organisation prefers to keep a higher inventory, thereby increasing the aggregate demand. This additional inventory needs additional storage space that is facilitated by a rented warehouse. Ignoring the effects of time value of money and inflation might yield misleading results. In the present study, a 'two-warehouse inventory model with linear trend in demand under the inflationary conditions' has been developed. A rented warehouse (RW) is used to store the excess units over the capacity of the own warehouse (OW). The stock is being transferred from rented warehouse to own warehouse in a continuous release pattern with per unit transportation cost being factored in. The solution methodology provided in the model helps to decide on the feasibility of renting a warehouse. The results have been elucidated with numerical examples.

Suggested Citation

  • Chandra K. Jaggi & Priyanka Verma, 2010. "Two-warehouse inventory model for deteriorating items with linear trend in demand and shortages under inflationary conditions," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 3(1), pages 54-71.
    • Handle: RePEc:ids:ijpman:v:3:y:2010:i:1:p:54-71
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=29775
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bhunia, A.K. & Jaggi, Chandra K. & Sharma, Anuj & Sharma, Ritu, 2014. "A two-warehouse inventory model for deteriorating items under permissible delay in payment with partial backlogging," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 1125-1137.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijpman:v:3:y:2010:i:1:p:54-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=255 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.