Inflation Effects on Deteriorating Items with Dual-Warehouse and Hybrid Payment using MATLAB

This study examines inventory strategies for managing non-instantaneously degrading products in a dual-warehouse system under inflationary conditions. The model features an owned warehouse and a rented facility with limited capacity, incorporating demand dependence on advertising intensity and selling price. A hybrid payment scheme reflects real-world practices, while partial backlogging accounts for shortages and client frustration. The objective is to determine optimal replenishment policies that minimize long-term inventory costs. This research is particularly relevant for industries like oil and perishables, where slow degradation, dynamic demand, and inflation require sophisticated management. Numerical validation and sensitivity analysis using MATLAB R2024a confirm the model’s effectiveness, offering valuable insights for decision-makers to navigate inflation-driven demand fluctuations and maintain efficient inventory control.