Deterministic inventory model with two levels of storage, a linear trend in demand and a fixed time horizon

A deterministic inventory model is developed for a single item having two s eparate storage facilities (owned and rented warehouses) due to limited cap acity of the existing storage (owned warehouse) with linearly time-dependen t demand (increasing) over a fixed finite time horizon. The model is formul ated by assuming that the rate of replenishment is infinite and the success ive replenishment cycle lengths are in arithmetic progression. Shortages ar e allowed and fully backlogged. As a particular case, the results for the m odel without shortages are derived. Results are illustrated with two numeri cal examples.