An Inflation-Affected Supply-Chain Dual Warehouse Inventory Model for Decaying Things by Investment in Preservation Technology

Abstract

It is common to observe that when demand increases, an industry with limited storage capacity (OW) must rent a warehouse (RW). We must purchase more product in larger quantities due to the COVID-19 epidemic, sales discounts, or other factors. When OW's capacity is reached, extra stock is held in RW at a high holding charge compared to OW. The dual warehouse inventory problem of a supply chain constrained by limited storage capacity in OW for non-instantaneously decaying commodities under inflationary conditions has been investigated in the current study. There is a partial backlog in shortages, and the demand rate is depending on inventory. Because of the quick changes in the environment, preservation technology has become increasingly crucial in today's global society. In order to slow down the deterioration of goods with a high rate of deterioration, preservation technology is specifically used in this article. Our primary goal is to reduce the suggested model's overall cost function. At the conclusion of this work, A sensitivity analysis and numerical illustration have been performed to showcase the model.