Inventory of multi-deteriorating items sold from two shops under single management with constraints on space and investment

Citation
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
Citations number
19
Categorie Soggetti
Engineering Management /General
Journal title
COMPUTERS & OPERATIONS RESEARCH
ISSN journal
03050548 → ACNP
Volume
28
Issue
12
Year of publication
2001
Pages
1203 - 1221
Database
ISI
SICI code
0305-0548(200110)28:12<1203:IOMISF>2.0.ZU;2-#
Abstract
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.