AN INVENTORY FRAMEWORK FOR TWO-WAREHOUSE CONSIDERING QUADRATIC DEMAND AND EXPONENTIAL DETERIORATION OF PRODUCTS

Abstract A two-warehouse inventory model with a quadratic demand rate and an exponential deterioration rate is examined in this research. One owned warehouse and one rented warehouse are part of the system. Realistic shifts in the demand over time, such as seasonal fluctuations or market dynamics, are reflected in the quadratic demand function. The decay of perishable or time-sensitive products is modelled by exponential deterioration. To find the best replenishment plan, the model takes holding, degradation, and ordering costs into account. To assess the model's sensitivity and aid in useful decision-making for businesses handling perishable items, a numerical example is given. This approach assists companies in reducing overall inventory expenses while preserving service quality in the face of fluctuating demand and degradation. The model's applicability can be expanded to include industries with time-sensitive supply chains, such as pharmaceuticals and food distribution.