Analysis of a deterministic inventory model for perishable items with two warehouses

In conventional theory of inventory models, the general assumption is that the inventory is held in a single warehouse. But in practice, it may be required to use several warehouses to store the goods. An inventory model for deteriorating items, with two warehouses for storage of items, is developed and analysed in this paper. It is assumed that the two warehouses may have different deterioration rates and different holding costs. The model is set up assuming finite replenishment rate, uniform demand rate and with backlogging of shortages. Sensitivity analysis of the model is carried out considering perturbations in order-level, production size and deterioration rates.