A deteriorating inventory model with tow storage facilities, partial backordering and quantity discount

Inventory models considering deteriorating items have received much attention in recent years. In this paper a deteriorating inventory model with two storage facilities, partial backordering and quantity discount is developed. Two storage facilities are considered due to the limited capacity of our own warehouse; the excess stock will be stored in the rented warehouse. This rented warehouse usually offers a better facility, thus has a lower rate of deterioration but a higher unit holding cost than our own warehouse. Our goal in this research is to minimize the total cost of the system. A numerical example and sensitivity analysis are given to illustrate the theory.