S. Kar et al., Inventory of multi-deteriorating items sold from two shops under single management with constraints on space and investment, COMPUT OPER, 28(12), 2001, pp. 1203-1221
In this study, we propose an inventory model for several continuously deter
iorating items, sold from two shops - primary and secondary shops, under si
ngle management dealing with limitations on investment and total floor-spac
e area. Initially items are purchased in lots and received at the primary s
hop, then fresh and deteriorated units are separated, only the fresh units
are sold from the primary shop with a profit and its demand is a determinis
tic linear function of instantaneous stock level and the selling price of t
he units. The deteriorated units are transferred to the adjacent secondary
shop for sale at a reduced price and the demand for these units is linearly
proportional to the selling price only. In both the shops, shortages are n
ot allowed. There may be six scenarios depending upon the time periods of t
wo shops and altogether there will be 6(n) (n greater than or equal to 2) d
ifferent cases for n items. In each case optimum order quantities are evalu
ated maximizing the corresponding average profit function. Models are illus
trated with numerical examples for two items only.