DAIRY INDUSTRY INVENTORY MODEL FOR DETERIORATING ITEMS WITH TWO-WAREHOUSE UNDER FIFO DISPATCHING POLICY
1Mohammed Abid, 2Ajay Singh Yadav
1Research Scholar, SRM Institute of Science and Technology, Delhi-NCR Campus, Ghaziabad, Uttar Pradesh, India.
2Department of Mathematics, SRM Institute of Science and Technology, Delhi-NCR Campus, Ghaziabad, Uttar Pradesh, India.
The dairy industry’s two-warehouse inventory model for spoiled items in the event of shortages and inflation under the FIFO shipping policy addresses the challenges of inventory management in the dairy industry. This mathematical model combines theories of inventory management, spoilage, shortages and inflation to optimize inventory decisions. The model is based on the FIFO principle to ensure that the oldest inventory is shipped first, minimizing the risk of spoilage. Dairy expiration rates are considered to determine optimal restocking and shipping policies. The model also takes into account the possibility of bottlenecks and aims to minimize them through effective inventory management. In addition, inflation is taken into account to reflect changes in the economic environment and its impact on inventory costs. By applying mathematical techniques and optimization algorithms, the model helps to minimize total inventory costs and improve operational efficiency in the dairy industry. This summary provides an overview of the key elements and theoretical underpinnings of the dairy industry’s two-store inventory model and highlights its importance in improving inventory management practices.
Keywords:- Inventory, owned warehouse, rented warehouse, ramp type demand, deteriorating items, inflation, Shortages and FIFO dispatching policy.