On an inventory model with two levels of storage and stock-dependent demand rate

Jayjayanti Ray · Adrijit Goswami · Kripasindhu S. Chaudhuri

59 citations0/0 files storedInternational Journal of Systems Science

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Supply Chain and Inventory Management Logistics and Transportation Systems Optimization and Mathematical Programming

Abstract

An order-level inventory model is developed by assuming that the demand rate is stock-dependent and two separate warehouses are used. When the stock level exceeds the capacity of the own warehouse (OW), a rented warehouse (RW) is used. The stock is transferred periodically in bulk from RW to OW and there is an associated transportation cost. No shortages are allowed. An algorithm is developed to obtain the optimal solution of the model. To study the effects of changes in the system parameters on the decision variables, a sensitivity analysis is carried out by taking a numerical example.

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References

1988A Deterministic Inventory System with an Inventory-Level-Dependent Demand Rate 1993A deterministic inventory model for deteriorating items with stock-dependent demand rate 1990A Note on an Inventory Model with Inventory-level-dependent Demand Rate 1992An Inventory Model with an Inventory-Level-Dependent Demand Rate and Relaxed Terminal Conditions 1977Operations Research—A Managerial Emphasis 1992An Economic Order Quantity Model for Items with Two Levels of Storage for a Linear Trend in Demand 1992An Economic Order Quantity Model for Items with Two Levels of Storage for a Linear Trend in Demand

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