Deterministic inventory model of deteriorating items sold from two shops under a single management

This paper deals with two shops (primary and secondary) inventory models of deteriorating items under single management. After replenishment, fresh and deteriorated units (measured in amount) are separated first, then fresh units are stocked and sold from the primary shop with a profit, whereas the deteriorated units are continuously transferred to the secondary shop as and when they are deteriorated and sold from this shop at a reduced price. This model considers the impact of pricing and stock-dependency in demand as well as backorder decision in the primary shop on the profitability of the system. To meet up the backlogged units, the management purchases higher priced fresh units along with the lot. Finally, a numerical example is used to study the behaviour of the model.