The optimal inventory model of two warehouses: Time-varying demand considering credit period

Abstract

It is assumed that the demand rate of goods is a time-varying function; meanwhile, suppose that OW and RW have different rate of deterioration and the limitation of continuous transportation is relaxed. Based on the assumptions, inventory models of two warehouses whose time-varying demand considering credit period are constructed, thus may have a widely application. Besides, the existence of the optimal replenishment strategy is proved by providing examples on calculating the optimal replenishment cycles and sensitivity analysis is also done on relevant parameters.