An optimal inventory policy with ramp type demand rate and time varying holding cost in two-warehousing environment

In presenting paper, an inventory model for deteriorating items has been developed by considering time varying deterioration and ramp type demand rate. Shortages are allowed with partially backlogged. This work is mainly focused on two-warehouse storage policy with linearly depended holding cost. It is assumed that holding cost and fare of rented warehouse is higher than the holding cost payable at owned warehouse. To make the model more general, other relevant parameters have also been considered related to inventory control system such as trade credit policy. Total cost function has been verified through numerical and graphical representation. A sensitivity analysis is also done to check the sensitivity of the model. This study further can be modified by inculcating other parameters of inventory control system.