A Two Warehouse Inventory Model for Deteriorating Items with Cubic Demand, Quadratic Holding Cost and Variable Backlogging Rate
Purabi Deb Choudhury1, Parag Dutta2
1Purabi Deb Choudhury, PG Student, Department of Mathematics, Assam University, Silchar, (Assam), India.
2Parag Dutta, PG Student, Department of Mathematics, Assam University, Silchar (Assam), India.
Manuscript received on September 04, 2015. | Revised Manuscript received on September 14, 2015. | Manuscript published on September 30, 2015. | PP: 18-22 | Volume-2 Issue-10, September 2015. | Retrieval Number: J03350921015
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This paper deals with a two warehouse inventory model for decaying items in which demand is taken to be cubic function of time, holding cost is assumed to be quadratic function of time, backlogging rate is variable and depends on the length of the waiting time for next replenishment. Shortages are allowed in the owned warehouse. Holding cost in rented warehouse is higher than that of own warehouse. Finally the model is solved mathematically and profit maximization technique is used to illustrate the system.
Keywords: Inventory, Own warehouse, Rented warehouse, Cubic demand, Quadratic holding cost.