TWO WAREHOUSE EOQ MODEL FOR INSTANTANEOUS DETERIORATING ITEMS WITH NON LINEAR STOCK DEPENDENT DEMAND UNDER TRADE CREDIT FINANCING POLICY AND PARTIAL BACKLOGGING

Abstract

A two warehouse(own warehouse and rented warehouse)EOQ model withnon linear stock dependent demand forinstantaneous deteriorating items withshortage is presented.  The supplier offers the retailer a trade credit period to settle the amount. Shortagesare allowed subject to partial backloggingat Own Warehouse. Different Cases based on the trade credit period have been considered. The aim of this work is to minimize the total inventory cost and to find the optimal length of replenishment and the optimal order quantity. Computational algorithms for this model are designed to find the optimal order quantity and the optimal cycle time. The solution methodology provided in this model helps to decide the feasibility of renting a warehouse and to avail a trade credit period for a non linear stock dependent demand. The results have been elucidated with hypotheticalnumerical examples. Numerical illustrations and managerial insights are obtained to demonstrate the application and the performance of the proposed theory.

Keywords: Non-linear stock dependent demand, Instantaneous deterioration, Permissible delay in payment, Two warehouses, Partial backlogging