Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
483224 | European Journal of Operational Research | 2007 | 19 Pages |
Abstract
In this paper, a deterministic inventory model for deteriorating items with two warehouses is developed. A rented warehouse is used when the ordering quantity exceeds the limited capacity of the owned warehouse, and it is assumed that deterioration rates of items in the two warehouses may be different. In addition, we allow for shortages in the owned warehouse and assume that the backlogging demand rate is dependent on the duration of the stockout. We obtain the condition when to rent the warehouse and provide simple solution procedures for finding the maximum total profit per unit time. Further, we use a numerical example to illustrate the model and conclude the paper with suggestions for possible future research.
Related Topics
Physical Sciences and Engineering
Computer Science
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Authors
Chung-Yuan Dye, Liang-Yuh Ouyang, Tsu-Pang Hsieh,