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This model is based on the study of a market situation where a retailer is interested in bulk purchasing. The retailer buys excess units of product then the available storage capacity. So he needs to get some extra space in the form of rented warehouse. It is assumed that because of suitable storage conditions in the rented warehouse (RW), there is no deterioration of items. In owned warehouse (OW), constant deterioration of items takes place. Demand is taken as a function of selling price. Demand and selling price are inversely related. With the increase in selling price, demand of the product decreases and vice versa. This model is constructed considering complete backlogging of demand during period of shortages under the effect of inflation. Numerical example is given to discuss the approach of study. The effect of variation of various parameters is presented and shown graphically.

malaya journal of matematik

Replenishment model for deteriorating items with price dependent demand and complete backlogging in two storage facilities under the effect of inflation