DETERIORATING ITEMS FOR TWO STORAGE FACILITIES WHEN DEMAND IS EXPONENTIALLY DECLINING

In this research study, an attempt is made to develop ordering policy for deteriorating items when demand is exponentially decreasing and retailer uses two warehouses to store items. It is assumed that the cycles form a regenerative process. The total cost per time unit is minimized. A numerical example is given to illustrate the model. Sensitivity analysis is carried out to study the changes in the decision variables and total cost of an inventory system. KEY WORDS: Order-level lot-size model, deterioration, two ware-houses, exponentially declining demand