Work

Optimizing inventory management with strategic utilization of port free storage within the chemical industry

Year: 2025

Type: article

Abstract: This paper presents a novel inventory model for non-instantaneously deteriorating items with demand dependent on the selling price. The model strategically utilizes the cost-free storage period offered by ports as a temporary buffer before transferring goods to owned warehouses, enabling cost-effective inventory management within a two-warehouse distribution system. Unlike traditional supply chains that depend solely on rented or owned storage, the proposed approach minimizes holding costs and improves resource utilization by taking advantage of the port’s free storage window. Additionally, the model incorporates investments in energy-efficient green technologies to reduce carbon emissions during transportation between the port, warehouse, and industry. Numerical experiments confirm the model’s ability to significantly reduce total inventory costs, while sensitivity analysis highlights its robustness under varying selling prices. The inclusion of green technology further enhances environmental sustainability. Implemented in MATLAB R2024a, the model provides valuable insights for managing inventory efficiently in price-sensitive and environmentally regulated supply chains.

Source: Ain Shams Engineering Journal

DOI: 10.1016/j.asej.2025.103792

Authors: Anthony Limi, K. Rangarajan, Imen Ali Kallel, Yassine Saoudi

Institutions: Saveetha University, Northern Border University, Al-Ahliyya Amman University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Responsible consumption and production, Climate action

Open Access status: gold

Estimated APC paid: $1,200