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A deterministic order level inventory model for deteriorating items with two storage facilities. (English) Zbl 0614.90027
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.
Reviewer: S.Goyal

90B05Inventory, storage, reservoirs
Full Text: DOI
[1] Aggarwal, S. P.: A note on an order level inventory model for a system with a constant rate of deterioration. Opsearch 15, 184-187 (1978) · Zbl 0408.90025
[2] Chowdhury, M. R.; Chowdhury, K. S.: An order level inventory model for deteriorating items with finite rate of replenishment. Opsearch 20, 99-106 (1983) · Zbl 0521.90042
[3] Hartley, V. Ronald,Operations Research-A managerial Emphasis, Good Year, California, 315--317.
[4] Naddor, E.: Inventory systems. (1966) · Zbl 0315.90019
[5] Sarma, K. V. S.: A deterministic inventory model with two levels of storage and an optimum release rule. Opsearch 20, 175-180 (1983) · Zbl 0524.90030
[6] Shah, Y. K.; Jaiswal, M. C.: An order level inventory model for a system with a constant rate of deterioration. Opsearch 14, 174-184 (1977)