An optimal replenishment policy for non-instantaneous deteriorating items with two storage facilities

Deterioration has received a considerable attention in the past, and researchers have propounded a number of inventory models for the deteriorating items. It has been generally assumed that items start deteriorating as soon as they arrive in the warehouse. But in real life there are various products, like fresh fruits, vegetables, milk, meat etc., that have a shelf-life and start deteriorating after a time lag. This underlines the fact that for some initial period of time, there is no deterioration in items. This phenomenon is termed as non-instantaneous deterioration and the items are termed as non-instantaneous deteriorating items. In the present study, a two-warehouse inventory model for non-instantaneous deteriorating items has been developed. Moreover, shortage at Own Warehouse (OW) is also allowed subject to full backlogging. The solution methodology provided in this model helps to decide the feasibility of renting a warehouse. The results have been elucidated with numerical examples. © 2010 Inderscience Enterprises Ltd.