A multi-warehouse partial backlogging inventory model for deteriorating items under inflation when a delay in payment is permissible

Debasis Das (), Arindam Roy () and Samarjit Kar ()

Annals of Operations Research, 2015, vol. 226, issue 1, 133-162

Abstract: In this paper we develop a multi-item multi-warehouse inventory model for deteriorating items for m secondary warehouses (SWs) and one primary warehouse (PW) with displayed stock and price dependent demand under permissible delay in payment. Items are sold from PW which is located at the main market and due to large stock and insufficient space of existing PW, excess items are stored at m SWs of finite capacity. Due to different preserving facilities and storage environment, inventory holding cost is considered to be different in different warehouses. Here the demand of items is a deterministic function of corresponding selling price and the displayed inventory. Shortages are allowed and partially backlogged. The items of SWs are transported to the PW in continuous release pattern and associated transportation cost is proportional to the distance from PW to SWs. Here $$M_{i} (>T_{i}$$ M i ( > T i , cycle time) be the period of permissible delay in settling account for ith item, without the interest charges. But if the retailer settles the account after $$M_{i}$$ M i , he will have to pay with interest per cycle for the inventory not sold after the due date $$M_{i}$$ M i . A single objective inventory problem is solved numerically by developing Genetic algorithm and the maximum average profit and the corresponding optimum decision variables are evaluated. Finally the model is illustrated using a numerical example. A sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out. Copyright Springer Science+Business Media New York 2015

Keywords: Inventory; Multi-warehouse; Delay in payment; Price and stock dependent demand; Deteriorating items; Genetic algorithm (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10479-014-1691-6 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:226:y:2015:i:1:p:133-162:10.1007/s10479-014-1691-6

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-014-1691-6

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().