Two-Warehouse Inventory Model For Deteriorating Items With Stock-Level-Dependent Demand Under LIFO And FIFO Dispatching Policy

In this thesis, considering the patterns that the demand affected by inventory levels, we study two-warehouse inventory model for a deteriorating item(a limited storage capacity of its own, denoted OW, a unlimited storage capacity of rented warehouse, denoted RW). We mainly focuses on the retailers consider a deteriorating item with stock-dependent demand that optimal order policy and order cycle of two-warehouse system, at the same time under the condition of different deteriorating rates and inventory holding costs, a comparative analysis on last in first out(LIFO) and first in first out(FIFO) strategy of two-warehouse inventory model were studied, and it provide a theoretical basis for the retailer's inventory management decisions.Firstly, according to the characteristics of the two-warehouse inventory system, we divided into two different situations: the LIFO(Priority of using goods stored in the rented warehouse to meet customer demand) and the FIFO(Priority of using goods stored in its own warehouse to meet customer demand).The first one is to consume the goods stored in the rented warehouse, as rent the warehouse the goods is exhausted we use the goods stored in own warehouse to meet customer demand, the other is to consume the goods stored in their own warehouse, as its own warehouse goods is exhausted we invoke the rented warehouse goods to meet customer demand. Then to comprehensively consider the metamorphic factor of goods, transport costs and allow shortage and partial backlogging, based on the LIFO and FIFO choice, respectively, set up the two-warehouse inventory model with stock-dependent demand, and gives the effective method to solve the model, and derive the optimal order quantity and cycle. Finally, we make the sensitivity analysis of the parameters of the model, and verified the optimal solution existence and the various parameters of inventory systems have different sensitivities.