A TWO-WAREHOUSE INVENTORY MODEL WITH REWORK PROCESS AND TIME-VARYING DEMAND

A two-warehouse inventory model with deteriorating items and rework process time varying demand rate is presented. The Last-In-First-Out (LIFO) First-In-First-Out (FIFO) policies are considered the assumption that holding cost higher in rented warehouse (RW) compared to owned (OW). aim of proposed determine optimum values a production cycle will minimise total relevant cost, TRC*. We have utilised Microsoft Excel Solver as solution tool, which generalised reduced gradient (GRG Nonlinear) method has been chosen solving method. result further verified using built-in function Mathematica software. observed given same changes made parameters both LIFO FIFO systems, lower TRC* obtained system. This shall mean system less expensive than system, provided RW OW. flow suggests stored last be dispatched first. an important factor for manufacturers ensuring distributed at optimal freshness.