IDEAS home Printed from https://ideas.repec.org/a/spr/snopef/v5y2024i4d10.1007_s43069-024-00366-0.html
   My bibliography  Save this article

Two-Warehouse Inventory Control for Deteriorating Items Using Hybrid and Stock-Dependent Demand with Partial Backlogging

Author

Listed:
  • Sachin Kumar Rana

    (Shaheed Mangal Pandey Government Girls Post Graduate College)

  • Amit Kumar

    (Shaheed Mangal Pandey Government Girls Post Graduate College)

Abstract

The role of the shelf-life expiry date is crucial in inventory management. Food and medicines, among other products, are safe for human consumption only within their shelf lives. In this study, we established a deterministic inventory model for deteriorating items in two-warehouse systems with partial backlogs. This model considers the buyer’s demand rate for decaying items, which includes both a backlog component and hybrid demand dependent on the selling price and credit duration. We analyze a two-warehouse system where one warehouse is owned and the other is rented. The rental warehouse offers better preservation facilities compared to the owned warehouse. The rate of deterioration in the two warehouses may differ due to varying preservation conditions. To determine the optimal solution and function graph, we used Mathematica software. Finally, a sensitivity analysis was conducted to assess how variations in different factors affect the optimal strategy.

Suggested Citation

  • Sachin Kumar Rana & Amit Kumar, 2024. "Two-Warehouse Inventory Control for Deteriorating Items Using Hybrid and Stock-Dependent Demand with Partial Backlogging," SN Operations Research Forum, Springer, vol. 5(4), pages 1-18, December.
    • Handle: RePEc:spr:snopef:v:5:y:2024:i:4:d:10.1007_s43069-024-00366-0
    DOI: 10.1007/s43069-024-00366-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43069-024-00366-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43069-024-00366-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. 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.
    2. Zhou, Yong-Wu & Yang, Shan-Lin, 2005. "A two-warehouse inventory model for items with stock-level-dependent demand rate," International Journal of Production Economics, Elsevier, vol. 95(2), pages 215-228, February.
    3. Yang, Hui-Ling & Teng, Jinn-Tsair & Chern, Maw-Sheng, 2010. "An inventory model under inflation for deteriorating items with stock-dependent consumption rate and partial backlogging shortages," International Journal of Production Economics, Elsevier, vol. 123(1), pages 8-19, January.
    4. Lee, Chun Chen & Hsu, Shu-Lu, 2009. "A two-warehouse production model for deteriorating inventory items with time-dependent demands," European Journal of Operational Research, Elsevier, vol. 194(3), pages 700-710, May.
    5. Goyal, Suresh Kumar & Chang, Chun-Tao, 2009. "Optimal ordering and transfer policy for an inventory with stock dependent demand," European Journal of Operational Research, Elsevier, vol. 196(1), pages 177-185, July.
    6. Sebatjane, Makoena & Adetunji, Olufemi, 2020. "A three-echelon supply chain for economic growing quantity model with price- and freshness-dependent demand: Pricing, ordering and shipment decisions," Operations Research Perspectives, Elsevier, vol. 7(C).
    7. Makoena Sebatjane & Olufemi Adetunji, 2022. "Optimal inventory replenishment and shipment policies in a three-echelon supply chain for growing items with expiration dates," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 809-838, September.
    8. Ali Akbar Shaikh & Abu Hashan Md Mashud & Md. Sharif Uddin & Md. Al-Amin Khan, 2017. "Non-instantaneous deterioration inventory model with price and stock dependent demand for fully backlogged shortages under inflation," International Journal of Business Forecasting and Marketing Intelligence, Inderscience Enterprises Ltd, vol. 3(2), pages 152-164.
    9. 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.
    10. 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.
    11. Sarma, K. V. S., 1987. "A deterministic order level inventory model for deteriorating items with two storage facilities," European Journal of Operational Research, Elsevier, vol. 29(1), pages 70-73, April.
    12. Neeraj Kumar & Sanjey Kumar, 2017. "An inventory model for deteriorating items with partial backlogging using linear demand in fuzzy environment," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1307687-130, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Yong-Wu & Zhong, Yuanguang & Li, Jicai, 2012. "An uncooperative order model for items with trade credit, inventory-dependent demand and limited displayed-shelf space," European Journal of Operational Research, Elsevier, vol. 223(1), pages 76-85.
    2. Chandan Mahato & Gour Chandra Mahata, 2023. "Sustainable partial backordering inventory model under linked-to-order credit policy and all-units discount with capacity constraint and carbon emissions," Flexible Services and Manufacturing Journal, Springer, vol. 35(3), pages 896-944, September.
    3. Liao, Jui-Jung & Chung, Kun-Jen & Huang, Kuo-Nan, 2013. "A deterministic inventory model for deteriorating items with two warehouses and trade credit in a supply chain system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 557-565.
    4. Sanjey Kumar & Neeraj Kumar, 2016. "An inventory model for deteriorating items under inflation and permissible delay in payments by genetic algorithm," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1239605-123, December.
    5. Yu, Jonas C.P., 2019. "Optimizing a two-warehouse system under shortage backordering, trade credit, and decreasing rental conditions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 147-155.
    6. Md. Al-Amin Khan & Ali Akbar Shaikh & Gobinda Chandra Panda & Asoke Kumar Bhunia & Ioannis Konstantaras, 2020. "Non-instantaneous deterioration effect in ordering decisions for a two-warehouse inventory system under advance payment and backlogging," Annals of Operations Research, Springer, vol. 289(2), pages 243-275, June.
    7. Panda, S. & Saha, S. & Goyal, S.K., 2013. "Dilemma of rented warehouse and shelf for inventory systems with displayed stock level dependent demand," Economic Modelling, Elsevier, vol. 32(C), pages 452-462.
    8. 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.
    9. Chandra K. Jaggi & Mamta Gupta & Amrina Kausar & Sunil Tiwari, 2019. "Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution," Annals of Operations Research, Springer, vol. 274(1), pages 309-329, March.
    10. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
    11. 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.
    12. Chung, Kun-Jen & Huang, Tien-Shou, 2007. "The optimal retailer's ordering policies for deteriorating items with limited storage capacity under trade credit financing," International Journal of Production Economics, Elsevier, vol. 106(1), pages 127-145, March.
    13. M. Palanivel & R. Uthayakumar, 2016. "Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and inflation over a finite time horizon," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 278-302, June.
    14. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Khanna, Aditi & Jaggi, Chandra K., 2016. "Impact of trade credit and inflation on retailer's ordering policies for non-instantaneous deteriorating items in a two-warehouse environment," International Journal of Production Economics, Elsevier, vol. 176(C), pages 154-169.
    15. Motla, Ritu & Kumar, Ashok & Saxena, Neha & Sana, Shib Sankar, 2023. "Inventory optimization in a green environment with two warehouses," Innovation and Green Development, Elsevier, vol. 2(4).
    16. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2014. "An EPQ model of ramp type demand with Weibull deterioration under inflation and finite horizon in crisp and fuzzy environment," International Journal of Production Economics, Elsevier, vol. 156(C), pages 159-166.
    17. A.K. Bhunia & A.A. Shaikh & R.K. Gupta, 2015. "A study on two-warehouse partially backlogged deteriorating inventory models under inflation via particle swarm optimisation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(6), pages 1036-1050, April.
    18. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    19. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    20. 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.

    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:spr:snopef:v:5:y:2024:i:4:d:10.1007_s43069-024-00366-0. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.