Abstract

This paper considers two warehouses production inventory model for deteriorating items with stock-dependent demand and completely backlogged shortages under preservation technology. For display and storage of inventory, one warehouse of finite capacity is located at the main market, called primary warehouse (PW) and another warehouse with large capacity at a small distance from the main market, called secondary warehouse (SW). Here we consider items are transported from SW to PW in continuous release pattern and the transportation cost is negligible. The aim of this study is to obtain the optimal cycle length for maximum average profit through a modified genetic algorithm (MGA). Finally the model is illustrated using a numerical example. A sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.