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An Imperfect Inventory Model for Multi-Warehouses Under Different Discount Policies With Shortages

An Imperfect Inventory Model for Multi-Warehouses Under Different Discount Policies With Shortages

Aastha Panwar, Sarla Pareek, Vinti Dhaka, Mandeep Mittal
Copyright: © 2022 |Volume: 14 |Issue: 1 |Pages: 15
ISSN: 1941-6296|EISSN: 1941-630X|EISBN13: 9781683180890|DOI: 10.4018/IJDSST.302646
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MLA

Panwar, Aastha, et al. "An Imperfect Inventory Model for Multi-Warehouses Under Different Discount Policies With Shortages." IJDSST vol.14, no.1 2022: pp.1-15. http://doi.org/10.4018/IJDSST.302646

APA

Panwar, A., Pareek, S., Dhaka, V., & Mittal, M. (2022). An Imperfect Inventory Model for Multi-Warehouses Under Different Discount Policies With Shortages. International Journal of Decision Support System Technology (IJDSST), 14(1), 1-15. http://doi.org/10.4018/IJDSST.302646

Chicago

Panwar, Aastha, et al. "An Imperfect Inventory Model for Multi-Warehouses Under Different Discount Policies With Shortages," International Journal of Decision Support System Technology (IJDSST) 14, no.1: 1-15. http://doi.org/10.4018/IJDSST.302646

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Abstract

A multi-warehouse inventory model with shortage has been developed where demand is taken as deterministic. In reality, during production, if the machine works for a long time, there may be a random breakdown, and the system shifts from controlled to out of control situation; in this time production system produces defective items. The retailer offers an all-unit quantity discount on the selling price of the item who in return gets a quantity-based discount on the purchase price of the item. The motive of this model is to study a multi-warehouse model for imperfect items under a quantity-based discount, where the defectives can be screened and then can be sold in a single batch where the decision variables are set as optimal ordering quantity and optimal shortage quantity to maximize the total profit of the retailer. A solution procedure is given to find the optimal solution, and a numerical example is given to illustrate this study. Sensitivity analysis is also performed to study the effect of the changes in parameter values on the optimal solution.