LIMITED CAPACITY STOREHOUSE INVENTORY MODEL FOR DETERIORATING ITEMS WITH PRESERVATION TECHNOLOGY AND PARTIAL BACKLOGGING UNDER INFLATION

T. SEKAR; R. UTHAYAKUMAR; P. MYTHURADEVI

Title	LIMITED CAPACITY STOREHOUSE INVENTORY MODEL FOR DETERIORATING ITEMS WITH PRESERVATION TECHNOLOGY AND PARTIAL BACKLOGGING UNDER INFLATION
Publication Type	Journal Article
Year of Publication	2017
Authors	SEKAR, T, UTHAYAKUMAR, R, MYTHURADEVI, P
Secondary Title	Inventory Model
Volume	21
Issue	3
Start Page	377
Pagination	28
Date Published	05/2017
Type of Work	scientific: mathematics
ISSN	1083-2564
AMS	91B54
Abstract	In today's time of higher rivalry in the business, there are many conditions, for example, offered concessions in mass acquiring, regularity, higher ordering cost, and so on., which compel a retailer to buy a greater number of amounts than required or surpass the capacity limit. So in this circumstance the retailer needs to buy an additional distribution center named as a leased storehouse to stock the additional amount. In this paper, we have considered a two storehouse (owned and leased storehouse) economic order quantity model for deteriorating items with a selling price dependent demand under the effect of inflation and shortages. Since holding cost of inventory items in leased storehouse is greater than that of owned storehouse, leased storehouses inventory level is depleted due to demand and deterioration. At this time owned storehouse is depleted due to deterioration only. After the inventory level of leased storehouse becomes zero, the inventory level of owned storehouse is depleted due to both demand and deterioration. The shortages are permitted in owned storehouse only which is partially backlogged. This paper aids the retailer in minimizing the total average inventory cost by finding the optimal interval and the optimal order quantity. Finally, a numerical example with sensitivity analysis is given to illustrate the proposed model.
URL	http://www.acadsol.eu/en/articles/21/3/4.pdf
DOI	10.12732/caa.v21i3.4
Short Title	Inventory Model 37
Alternate Journal	CAA
Refereed Designation	Refereed
Full Text	REFERENCES [1] Agrawal, S., Banerjee, S., and Papachristos, S. (2013). Inventory model with deteriorating items, ramp-type demand and partially backlogged shortages for a two warehouse system, Applied Mathematical Modelling, 37 No-s: 20-21, 8912-8929. [2] Bhunia, A.K., Jaggi, C.K., Sharma, A., and Sharma, R. (2014). A two warehouse inventory model for deteriorating items under permissible delay in payment with partial backlogging, Applied Mathematical and Computation , 232, 1125-1137. [3] Chang, C.T., Ouyang, L.Y., and Teng, J.T. (2003). An EOQ model for deteriorating items under supplier credits linked to ordering quantity, Applied Mathematical Modelling, 27, 983-996. [4] Chern, M.S., Yang, H.L., Teng, J.T., and Papachristos, S., 2008. Partial back-logging inventory models for deteriorating items with fluctuating demand under inflation, European Journal of Operational Research, 191(1), 125-139. [5] Chung, K.J., and Huang, T.S. (2007). The optimal retailer’s ordering policies for deteriorating items with limited storage capacity under trade credit financing, International Journal of Production Economics, 106, 127-145. [6] Dave, U. (1989). A deterministic lot-size inventory model with shortage and a linear trend in demand, Naval Research Logistics, 36(4), 507-514. [7] Goswami, A., and Chaudhuri, K. S. (1992). An economic order quantity model for items with two levels of storage for a linear trend in demand, Journal of Operational Research Society, 43(2), 157-167. [8] Hartely, V. R. (1976). Operations Research−A Managerial Emphasis, Good Year Publishing Company, California, 315-317. [9] Ho, C.H., Ouyang, L.Y., and Su, C.H. (2008). Optimal pricing, shipment and payment policy for an integrated supplier-buyer inventory model with two-part trade credit, European Journal of Operational Research,187, 496510. [10] Huang, Y.F. (2006). An inventory model under two levels of trade credit and limited storage space derived without derivatives, Applied Mathematical Modelling, 30, 418-436. [11] Huang, Y.F., and Hsu, K.H. (2008). An EOQ model under retailer partial trade credit policy in supply chain, International Journal of Production Economics,112, 655-664. [12] Huang, Y.F. (2007a). Economic order quantity under conditionally permissible delay in payments. European Journal of Operational Research, 176, 911-924. [13] Huang, Y.F. (2007b). Optimal retailer’s replenishment decisions in the EPQ model under two levels of trade credit policy, European Journal of Operational Research, 176, 1577-1591. [14] Hwang, H., and Shinn, S.W. (1997). Retailer’s pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments, Computers and Operations Research, 24 (1997) 539-547. [15] Jaggi, C.K., and Khanna, A. (2010). Supply chain models for deteriorating items with stock-dependent consumption rate and shortages under inflation and permissible delay in payment, International Journal of Mathematics in Operational Research, 2(4), 491-514. [16] Jaggi, C.K., and Kausar, A. (2011). Retailer’s ordering policy in a supply chain when demand is price and credit period dependent, International Journal of Strategic Decision Sciences, 2(4), 61-74. [17] Jaggi, C. K., and Mittal, M. (2012). Retailer’s ordering policy for deteriorating items with initial inspection and allowable shortages under the condition of permissible delay in payments, International Journal of Applied Industrial Engineering, 1(1), 64-79. [18] Jaggi, C. K., Pareek, S., Khanna, A., and Sharma, R. (2014). Credit financing in a two- warehouse environment for deteriorating items with price-sensitive demand and fully backlogged shortages, Applied Mathematical Modelling, 38, 5315-5333. [19] Jaggi, C.K., Tiwari, S., and Goel, S.K. (2016). Replenishment policy for non-instantaneous deteriorating items in a two storage facilities under inflationary conditions, International Journal of Industrial Engineering Computations, 7, 489-506. [20] Jaggi, C. K., Tiwari, S., and Shafi, A. A. (2015). Effect of deterioration on two-warehouse inventory model with imperfect quality.Computers and Industrial Engineering, 88, 378-385. [21] Jaggi, C. K., and Verma, P. (2010). Two- warehouse inventory model for deteriorating items with linear trend in demand and shortages under inflationary conditions, International Journal of Procurement Management, 3(1), 54-71. [22] Khanna, A., Mittal, M., Gautam, P., and Jaggi, C. K. (2016). Credit financing for deteriorating imperfect quality items with allowable shortages, Decision Science Letters, 5(1), 45-60. [23] Khurana, D., and Chaudhary, R.R. (2016). Optimal pricing and ordering policy for deteriorating items with price and stock dependent demand and partial backlogging, Uncertain Supply Chain Management, 4, 307-318. [24] Kumar, S., and Rajput, U. S. (2016). A probabilistic inventory model for deteriorating items with ramp type demand rate under inflation, American Journal of Operational Research, 6(1), 16-31. [25] Liang, Y., and Zhou, F. (2011). A two warehouse inventory model for deteriorating items under conditionally permissible delay in payment, Applied Mathematical Modelling, 35, 2221-2231. [26] Liao, J.J. (2008). An EOQ model with non-instantaneous receipt and exponentially deteriorating items under two-level trade credit, International Journal of Production Economics,113, 852-861. [27] Maiti, A., Mait, M., and Maiti, M. (2009). Inventory model with stochastic lead-time and price dependent demand incorporating advance payment, Applied Mathematical Modelling, 33(5), 2433-2443. [28] Mondal, B., Bhunia, A.K., and Maiti, M. (2003). An inventory system of ameliorating items for price dependent demand rate, Computers and Industrial Engineering, 45(3), 443-456. [29] Ouyang, L. Y., Chen, H. C., and Chang, H. C. (1999). Lead time and ordering cost reductions in continuous review inventory systems with partial backorders, Journal of the Operational Research Society, 50(12), 12721279. [30] Ouyang, L.Y., Wu, K.S., and Yang, C.T. (2006). A study on an inventory model for non-instantaneous deteriorating items with permissible delay in payments, Computers and Industrial Engineering, 51, 637-651. [31] Pakkala, T. P. M., and Achary, K. K. (1992). A deterministic inventory model for deteriorating items with two warehouses and finite replenishment rate, European Journal of Operational Research, 57(1), 71-76. [32] Palanivel, M., Sundararajan, R. and Uthayakumar. (2016). Two warehouse inventory model with non- instantaneously deteriorating items, stock dependent demand, shortages and inflation, Journal of Management Analytics, 3(2), 152-173. [33] Pandey, S.K., Singh, S.R., Vaish, B., and Tayal, S. (2017). An EOQ model with quantity incentive strategy for deteriorating items and partial backlogging, Uncertain Supply Chain Management, 5, 135-142. [34] Rastogi, M., Singh, S.R., Kushwah, P., and Tayal, S. (2017a). Two warehouse inventory policy with price dependent demand and deterioration under partial backlogging, Decision Science Letters, 6, 11-22. [35] Rastogi, M., Singh, S.R., Kushwah, P., and Tayal, S. (2017b). An EOQ model with variable holding cost and partial backlogging under credit limit policy and cash discount, Uncertain Supply Chain Management, 5, 27-42. [36] Sharma, V., and Chaudhary, R.R. (2016). Two warehouse optimized inventory model for time dependent decaying items ramp type demand rate under inflation, Uncertain Supply Chain Management, 4, 287-306. [37] Saha, S., and Sen, N. (2017). A study on inventory model with negative exponential demand and probabilistic deterioration under backlogging, Uncertain Supply Chain Management, 5, 77-88. [38] Sana, S.S., and Chaudhuri, K.S. (2008). A deterministic EOQ model with delays in payments and price-discount offers, European Journal of Operational Research, 184, 509-533. [39] San-Jos´e, L.A., Sicilia, J., and Garc´ıa-Laguna, J. (2015). Analysis of an EOQ inventory model with partial backordering and non-linear unit holding cost, Omega, 54, 147-157. [40] Sett, B. K., Sarkar, B., and Goswami, A. (2012). A two warehouse inventory model with increasing demand and time varying deterioration, Scientia Iranica, 19(6), 1969-1977. [41] Shastri, A., Singh, S. R., and Gupta, S. (2015). Supply chain management under the effect of trade credit for deteriorating items with ramp-type demand and partial backordering under inflationary environment, Uncertain Supply Chain Management, 3(4), 339-362. [42] Sharma, S., Singh, S.R., and Ram, M. (2015). An EPQ model for deteriorating items with price sensitive demand and shortages, International Journal of Operational Research, 23(2), 245-255. [43] Singh, S. R., Jain, S., and Pareek, S. (2013). An imperfect quality items with learning and inflation under two limited storage capacity, International Journal of Industrial Engineering Computations, 4(4), 479-490. [44] Singh, S.R., Khurana, D., and Tayal, S. (2016). An economic order quantity model for deteriorating products having stock dependent demand with trade credit period and preservation technology, Uncertain Supply Chain Management, 4, 29-42. [45] Singh, S. R., Kumar, N., and Kumari, R. (2009). Two-warehouse inventory model for deteriorating items with shortages under inflation and time-value of Money, International Journal of Computational and Applied Mathematics, 4(1), 83-94. [46] Singh, S. R., Kumar, T., and Gupta, C. B. (2011). A soft computing based inventory model with deterioration and price dependent demand, International Journal of Computer Applications, 36(4), 10-17. [47] Skouri, K., Konstantaras, I., Papachristos, S., and Ganas, I. (2009). Inventory models with ramp type demand rate, partial backlogging and Weibull deterioration rate, European Journal of Operational Research, 192(1), 79- 92. [48] Taleizadeh, A. A., and Pentico, D.W. (2013). An economic order quantity model with a known price increase and partial back ordering, European Journal of Operational Research, 228(3), 516-525. [49] Tayal, S., Singh, S. R., and Sharma, R. (2015). An inventory model for deteriorating items with seasonal products and an option of an alternative market, Uncertain Supply Chain Management, 3(1), 69-86. [50] Tayal, S., Singh, S. R., Sharma, R., and Chauhan, A. (2014). Two echelon supply chain model for deteriorating items with effective investment in preservation technology, International Journal of Mathematics in Operational Research, 6(1), 84-105. [51] Valliathal, M., and Uthayakumar, R. (2011). A new study of an EOQ model for deteriorating items with shortages under inflation and time discounting, Iranian Journal of Operations Research, 2(2), 48-62. [52] Wee, H. M. (1997). A replenishment policy for items with a pricedependent demand and a varying rate of deterioration, Production Planning and Control, 8(5), 494-499. [53] Yang, H. L. (2004). Two-warehouse inventory models for deteriorating items with shortages under inflation, European Journal of Operational Research, 157(2), 344-356.