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Two-warehouse inventory model with ramp-type demand and partially backlogged shortages

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  • Swati Agrawal
  • Snigdha Banerjee

Abstract

In this article, we consider an inventory model for items that are stored in two-warehouses when demand is a general ramp-type function of time. Shortages are allowed and a constant fraction of shortages is backlogged. The existence and uniqueness of optimal solution is proved for both – the single-warehouse and the two-warehouse models. An algorithm is developed to facilitate the choice between the two-warehouse and the single-warehouse systems and hence to obtain the optimal replenishment policy. Numerical examples are presented. Sensitivity analysis with respect to the parameters of the model is performed.

Suggested Citation

  • Swati Agrawal & Snigdha Banerjee, 2011. "Two-warehouse inventory model with ramp-type demand and partially backlogged shortages," International Journal of Systems Science, Taylor & Francis Journals, vol. 42(7), pages 1115-1126.
    • Handle: RePEc:taf:tsysxx:v:42:y:2011:i:7:p:1115-1126
    DOI: 10.1080/00207720903308363
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    Cited by:

    1. Hui-Ling Yang & Chun-Tao Chang & Yao-Ting Tseng, 2024. "Optimal Replenishment Strategy for a High-Tech Product Demand with Non-Instantaneous Deterioration under an Advance-Cash-Credit Payment Scheme by a Discounted Cash-Flow Analysis," Mathematics, MDPI, vol. 12(19), pages 1-25, October.
    2. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2015. "A production inventory model for deteriorating item with ramp type demand allowing inflation and shortages under fuzziness," Economic Modelling, Elsevier, vol. 46(C), pages 334-345.

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