A deterministic two storage inventory model for variable production and inventory-level-dependent demand rate

A deterministic inventory model is developed for a single item with two separate storage facilities (own warehouse and rented warehouse) due to limited capacity of the existing storage (own warehouse) by considering variable rate of production and inventory-level dependent demand. The rate of production is partly constant and is partly dependent on instantaneous demand. Shortages are not allowed and the results are illustrated with a numerical example.