Two-warehouse inventory model with ramp-type demand and partially backlogged shortages

Swati Agrawal and Snigdha Banerjee

International Journal of Systems Science, 2011, vol. 42, issue 7, 1115-1126

Abstract: In this article, we consider an inventory model for items that are stored in two-warehouses when demand is a general ramp-type function of time. Shortages are allowed and a constant fraction of shortages is backlogged. The existence and uniqueness of optimal solution is proved for both – the single-warehouse and the two-warehouse models. An algorithm is developed to facilitate the choice between the two-warehouse and the single-warehouse systems and hence to obtain the optimal replenishment policy. Numerical examples are presented. Sensitivity analysis with respect to the parameters of the model is performed.

Date: 2011
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DOI: 10.1080/00207720903308363

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