Multi Warehouse Inventory Optimization with Varying Holding Costs, Deterioration Rates, and Carbon Tax
摘要
Warehouses are essential for inventory management as they offer a regulated environment for storing, sorting, and controlling products. In times of low demand, the warehouse enables businesses to keep extra inventory and release it when the demand rises. Companies can position goods closer to the end customers by strategically locating multiple warehouses in various areas or close to crucial marketplaces. Therefore, the study offers a multi warehouse inventory model for perishable goods with different deterioration rates. Here, preservation technology is used in its own warehouse, resulting in a material deterioration rate that is far lower than in a rented warehouse. First, inventory is sold out of a rented warehouse, and then the products are sold from their own warehouse. The study assumes that the storage capacities of the two warehouses are equivalent. Additionally, many companies have committed to minimizing their carbon impact and pursuing environmental goals. Considering carbon expenses, inventory and warehousing strategies can be coordinated with these objectives, encouraging ecologically friendly behaviour. By implementing carbon tax into inventory management and warehouse optimization models, the research proves its dedication to upholding environmental duties and minimizing carbon footprint. By optimizing the length of the inventory model’s cycle and the products price, the study aims to minimize the overall cost. Numerical examples and sensitivity tests for the crucial factors are also discussed in the study. The study suggests that retailers can reduce profit margins by optimizing the delivery routes, negotiating better terms, streamlining logistics, reducing lead times, reviewing cost structures, and implementing strict quality control procedures.