Performance Measures of Online Warehouse Service System with Replenishment Policy

Abstract

In this work, we studied an inventory model with a single-component preservation system and the replenishment schedule as decision variables. The system has characteristics with three distinct states. The productive items are maintained in the warehouse, the items are serviced on demand of the customers, any defective items are to be serviced if it serviceable or discarded. The system is monitored periodical intervals, and the warehouse system is maintained with frequent observations and inspections. Based on the request of the customer the products are serviced. If any defective product is serviced then the customer has the right to the returned product with a new item or amount paid. The defective items that are returned from the customers re-entered into the service system after repair or discarded as scrap. The key intention of the paper is to minimize the optimization of cost, minimal time service, and effective stock of the warehouse. The produced results show that effective improvement with existing metrics. Finally, we formulated an inventory model for the stochastic optimal performance measures of various parameters.

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