Interval number approach for two-warehouse inventory management of deteriorating items with preservation technology investment using analytical optimization methods

Inventory management is important in every business since products lose quality during production and storage, including the food industry, semiconductor manufacturing industry, electronics and mechatronics industry, and others. An inventory problem is a difficult task for researchers because of the unpredictability of the market economy and the fluctuation of customers demand in the current competitive market. In this article, the economic order quantity (EOQ) model in an interval environment is discussed. A two storage EOQ inventory model for decaying items with time-dependent linear demand is proposed under imprecise environment. The concept of preservation technology investment is used to minimize the effects of deterioration. Shortages are considered and are completely backlogged to make the model is more realistic. This model aims to minimize total average cost while determining the optimal ordering policy and cycle length. Several theorems have been proven to be accurate in determining the optimal values for the total average cost. The necessary and sufficient criteria of the optimisation are satisfied by these theorems. A numerical example is used as support for the established model, and sensitivity analysis is done in relation to some important system parameters with the help of MATLAB software (R2021b). The graphical illustration of the optimal solution is a useful tool for decision-making and analysis. The proposed approach is then illustrated with a graphic depicting the optimal solution.