Aastha
Department of Mathematics and Statistics, Banasthali Vidyapith, Banasthali, 304022, Rajasthan, India.

Sarla Pareek
Department of Mathematics and Statistics, Banasthali Vidyapith, Banasthali, 304022, Rajasthan, India.

Leopoldo Eduardo Cárdenas-Barrón
Department of Industrial and Systems Engineering, School of Engineering and Sciences, Tecnológico de Monterrey, E. Garza Sada 2501 Sur, C.P. 64849, Monterrey, Nuevo León, México.

Mandeep Mittal
Department of Mathematics, Amity Institute of Applied Sciences, Amity University, Noida, 201313, Uttar Pradesh, India.

DOI https://doi.org/10.33889/IJMEMS.2020.5.5.067

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Abstract

Generally, the majority of the inventory models work on the concept that overall units produced must be perfect in terms of quality and that the storage capacity of the warehouse is unlimited. In fact, under realistic conditions, it is not possible to manufacture products with complete perfection. Furthermore, there are always some limits associated with storage capacity of the warehouse. This paper formulates an inventory model that considers the impact of imperfect quality items and shortages. The cost of storage in rented warehouse (RW) is greater than own warehouse (OW) due to fact there are better preservation facilities in RW. This work considers that defective items are completely withdrawn after the inspection process. The purpose of this inventory model is to establish the optimal order quantity and backorder size that maximize the total profit. Some numerical examples are solved, and a sensitivity analysis is included.

Keywords- Two warehouse, Imperfect quality items, Shortages.

Citation

Aastha,Pareek, S., Cárdenas-Barrón, L. E., & Mittal, M. (2020). Impact of Imperfect Quality Items on Inventory Management for Two Warehouses with Shortages. International Journal of Mathematical, Engineering and Management Sciences, 5(5), 869-885. https://doi.org/10.33889/IJMEMS.2020.5.5.067.