IAENG International Journal of Applied Mathematics

To maximize floor consumption orders in a two-stage supply chain with a ramp-type demand pattern, we create a unique inventory management model in this study. Different stages of inventory control are incorporated into the two-stage technique to improve overall system efficiency. The ramp-type demand, characterized by a gradual increase over time, is a common phenomenon in various industries and poses unique challenges to traditional inventory management practices. In the first stage, the model focuses on strategic decisions about order quantity and frequency at the central warehouse or distribution center. A dynamic optimization framework determines the optimal replenishment policies that balance the trade-off between holding costs and stockouts. The second stage involves tactical decisions at the retail or floor level, considering the unique characteristics of ramp-type demand. A refined ordering strategy is developed to accommodate the changing demand pattern and minimize stockouts during periods of rapid demand escalation. The study aims to identify the best replenishment strategies for reducing overall inventory costs and halting item deterioration. To determine the best course of action, an algorithm is created. Lastly, the suggested paradigm is demonstrated with numerical examples. A study on sensitivity is carried out, and several managerial implications are presented.