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Warehouse inventory has continually risen in significance and attracted the attention of researchers worldwide over the past few decades. They consider a variety of parameters to optimize the total cost and profit along with satisfying the customer’s demand.
In the present study of a warehouse inventory model for deteriorating multiple items of a supply chain with exponential demand functions and, time-dependent holding cost. The deterioration rate for each product is constant and shortage is considered. In real warehouse does not have unlimited capacity, that why, the capacity of the proposed model is limited. The models consist of ordering cost, purchase cost, screening cost, deterioration cost, shortage cost, and holding cost. The objective of this model is to minimize the total average cost. In order to validate the models, real-life data from a fashion store is considered. The model is solved using Dynamic Programming so that it can be found out the global optimal solution. Then the sensitivity of several major parameters is analyzed using MS Excel.
The optimal solution is derived using Dynamic Programming which helps the decision-maker to find out the total optimum cost and the amount of each product to be stored in warehouse to minimize the cost. In addition, it helps to predict the storage starting time of each product. The effect of the parameters is represented both in tabular form and in graphically. During sensitivity analysis, it is shown that demand of each product and capacity have a significant influence on both the amount of products and total cost. Moreover, changes in per-unit screening cost and shortage cost have a substantial effect on total cost only whereas the other parameters show minor changes in total cost. |
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