The Two-Warehouse Inventory Model for Non-Instantaneous Deteriorating Items With the Effect of Inflation and Preservation Technology

This study establishes a two-warehouse inventory model for deteriorating items, incorporating preservation technology, shortages, and inflation. Deterioration is considered a natural, non-instantaneous, constant process, which is mitigated through preservation technology. The model operates under the influence of inflation and allows shortages in the own warehouse. A hybrid demand function, dependent on both selling price and stock level, is applied to capture demand variations. The two-warehouse system comprises an own warehouse storing a fixed quantity and a rented warehouse (RW) for excess inventory. To demonstrate the model’s optimality, sensitivity analysis and graphical presentations are conducted. A numerical example is solved using Mathematica Software 7.0 to illustrate the model’s application