A Deterministic Inventory Model with Two Levels of Storage for Non-Degrading Commodities, Time-Dependent Demand, And Partly Backlogged Shortages

Abstract

In a market, the cost of the variables affecting the overall cost of the inventory may not be constant. Due to the fact that the price of commodities fluctuates for a variety of reasons, including low production and strong demand, poor productivity of seasonal goods as a result of natural disasters, etc., price inflation cannot be disregarded. This paper develops a deterministic inventory model with two levels of storage for non-degrading commodities, time-dependent demand, and partly backlogged shortages. Stock is moved from RW to OW using a continuous release pattern, and it is assumed that the cost of transportation is minimal. The inventory model takes into account the inflation rate for all related expenditures. It is expected that the product is sold before its self-life term has passed. Depending on the supplier's allowed delay length, several instances are examined, and the overall profit amount is contrasted. The numerical example is provided to show the model's viability.