Effect of Inflation and Permitted Three-Slot Payment on Two-Warehouse Inventory System with Stock-Dependent Demand and Partial Backlogging

This study examines the effect of monetary inflation for a two-warehouse single-product inventory system, in which items are stored limited capacity Own Warehouse (OW) and an unlimited Rental (RW). Demand item is considered stock dependent. Items may deteriorate at different constant rate both warehouses. Shortages allowed stock-out period partially backlogged satisfied next replenishment point. The supplier permits flexible payment options retailer to pay amount three equal payments time points. retailers’ preferred option as follows: first prior point with some discount; second one-third total purchasing cost, paid epoch; third after before start cycle, penalty. influence on cost calculation considered, analytic expression optimal minimal explicitly derived from this. We performed arrived sensitivity analysis discern effects backlogging rates, well discount penalties upon late costs optimizing cost.