A Two-warehouse Inventory System With Delay Payment Permitted

Inventory is an important area of operational research, which also plays significant rolein the field of management and logistics. Enterprises are apt to pursue perfectly inventorylevels recently, more and more money were invested in inventory .How to satisfy customers'expected requirements with the minimum stock cost is the objection of inventory control. Inorder to survive in this competitive market, so many choices are there, the managers selectappropriately according their practice. Many of them adopt two-warehouse inventory sys-tems, one is own-warehouse and the other is rented-warehouse like"Central WarehousingFacility".So, the study on two-warehouse inventory models has expansive foreground.After checking the relative literatures about two-warehouse inventory policy and delaypayment of inventory tactics. It was found that almost no literature was devoted to bothof them at the same time. So, two-warehouse and delay payment inventory models weredeveloped here. For common and deteriorating, two models and the corresponding controlstrategies are presented.Given the fact that little investments were needed on condition of delay payment,we set the maximum profit as our objection . It also introduced continuous-paymentand two-stages-payment while considering the effect of delay payment. Finally we gotthe algorithm of how to compute the economical solution of the non-deteriorating itemsmodels. Examples ere presented at the end of this article, it found that continuous-paymentcan bring more money than two-stages-payment to the business. Evolution algorithm wasused here to get the optimum solution of deteriorating items.