Deterministic inventory model with two levels of storage, a linear trend in demand and a fixed time horizon (Q5955969): Difference between revisions

The authors develop, and solve by a mathematical programme based on the gradient method a deterministic two-storage inventory model with linearly increasing time-dependent demand and fixed time horizon. The model is formulated by assuming that the rate of replenishment is infinite and the successive replenishment cycle lengths are in arithmetic progression. Shortages are allowed and fully backlogged. As a particular case, the results for the model without shortages are derived. Results are illustrated with two numerical examples. The presented methodology of model development and solution are quite general and can be applied to inventory models of any product whose production is periodical, and demand increases linearly with time.