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Zbl 0614.90027
Sarma, K.V.S.
A deterministic order level inventory model for deteriorating items with two storage facilities. (English)
[J] Eur. J. Oper. Res. 29, 70-73 (1987). ISSN 0377-2217

In this paper a deterministic inventory model is developed for a single deteriorating item which is stored in two different warehouses. A rented warehouse is used to store the excess units over the fixed capacity W of the own warehouse. The rented warehouse is assumed to charge higher unit holding cost than the own warehouse, but to offer a better preserving facility resulting in a lower rate of deterioration for the goods than the own warehouse. The optimal stock level for the beginning of the period is found and the model developed is shown to agree with the order level model for non deteriorating items with a single storage facility. An illustration to show the applicability of the model is also presented.
[S.Goyal]

MSC 2000:: *90B05 Inventory management

Keywords: deterministic inventory model; single deteriorating item; optimal stock level

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Zentralblatt MATH Berlin [Germany]