Optimizing inventory management with strategic utilization of port free storage within the chemical industry

This paper presents a novel inventory model for non-instantaneously deteriorating items with demand dependent on the selling price. The model strategically utilizes the cost-free storage period offered by ports as a temporary buffer before transferring goods to owned warehouses, enabling cost-effective inventory management within a two-warehouse distribution system. Unlike traditional supply chains that depend solely on rented or owned storage, the proposed approach minimizes holding costs and improves resource utilization by taking advantage of the port’s free storage window. Additionally, the model incorporates investments in energy-efficient green technologies to reduce carbon emissions during transportation between the port, warehouse, and industry. Numerical experiments confirm the model’s ability to significantly reduce total inventory costs, while sensitivity analysis highlights its robustness under varying selling prices. The inclusion of green technology further enhances environmental sustainability. Implemented in MATLAB R2024a, the model provides valuable insights for managing inventory efficiently in price-sensitive and environmentally regulated supply chains.