A comparison of different dispatching policies in two-warehouse inventory systems for deteriorating items over a finite time horizon

This paper considers a two-warehouse inventory problem for deteriorating items with a constant demand rate over a finite time horizon. A modified first-in-first-out dispatching policy is first proposed, and a new two-warehouse inventory model based on this dispatching policy is developed. The results of this model are then compared with those of other models based on classical dispatching policies, such as the last-in-first-out, modified last-in-first-out and first-in-first-out dispatching policies. We also prove the existence and uniqueness of the optimal solutions for the models considered. Finally, a numerical example is presented to illustrate the results, and several key conditions are derived for comparing the general cases of these four models.