An Inflationary Demand Scheme with Pareto Deterioration in Two Warehouses

Inventory management is one of the biggest issues in any business federation. There are many instances when storage space is no longer adequate, and a new warehouse is needed. This article deals with a two storage inventory model (one of them is Own Warehouse (OW) and another is Rented Warehouse (RW)) with exponentially time-varying demand considering partial backlogging. The capacity of own warehouse is fixed (U units), to store more units than the limited range of OW, the supplier has to rent another warehouse (RW) at higher holding cost. We study two warehouse policies with linear holding cost and Pareto type decay in an inflationary environment. We have worked out a model for determining costs and they are much lower than previous estimates. Ultimately, sensitivity investigation has been executed to demonstrate the effects of diverse parameters of the inventory system. We have also calculated the economic order quantity Q with the help of MATLAB software.