Dual-Channel Warehouse Raw Material Inventory Model for Probabilistic Demand
In manufacturing industries, raw material inventories play a big role. This paper discusses the merging of orders of two types of raw materials for two products in two different warehouses. Both types of raw materials are used to manufacture components for products; automotive and educational teaching aids. The demand for both products are probabilistic, while the two warehouses for raw materials have capacity constraints. The merger of ordering the same raw materials for the two warehouses is called dual-channel warehouse. This study shows that combined orders of raw material with dual-channel warehouse can save 29.61% compared to the two warehouses with individual orders.
KeywordsDual-channel warehouse Probabilistic demand Capacity constraint