REFINEMENT OF INVENTORY POLICY FOR PERISHABLE ITEM UNDER COMBINED EFFECT OF INFLATION, LIMITED STORAGE AND HYBRID BACKLOGGING FUNCTION

Perishable inventory system become highly Complex when economic fluctuations, storage limitations, and Customer shortage behavior act simultaneously. This research presents an integrated inventory model for perishable goods under the combined effects of inflation, limited storage capacity, and a hybrid backlogging strategy. Inflation is incorporated through a continuous discounting approach to reflect the changing value of money over time. The proposed backlogging mechanism depends on both waiting time and selling price, representing practical customer behavior during shortages. A portion of unmet demand is backordered based on delay tolerance and price sensitivity, while the remaining demand is considered lost sales. The total cost function includes ordering, holding, deterioration, shortage, and inflation-adjusted purchasing costs. The objective is to determine the optimal replenishment cycle, order quantity, and shortage duration that minimize overall system cost. Numerical examples and sensitivity analysis highlight the significant impact of inflation, warehouse limitations, and hybrid backlogging on optimal inventory decisions.