Author(s): Sarbjit Singh
In present dynamic environment with the rapid advancement of technology the life cycle of products has been shrunk especially high-tech products like mobile phones, laptops etc. To save on capital expenditure most of the companies have their warehouses with limited capacity and they take other warehouses on rent to absorb any fluctuations in demand. The model is framed considering that the product is perishable product and demand will fall drastically after some specific time. Another assumption is that the holding cost of the rented warehouse is more than their own warehouse. Numerical Illustration has been used to check the validity of the model.