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The main purpose of this paper is to modify Huang's model  by considering two warehouses. In addition, we try to use algebraic method to determine the optimal lot-sizing policy for the retailer under two warehouses and two levels of delay permitted. This paper provides this algebraic approach that could be used easily to introduce the basic inventory theories to younger students who lack the knowledge of calculus. Furthermore, we develop three easy-to-use theorems to efficiently determinedoi:10.2298/yjor0701055h fatcat:nw4k35bawnas5novewwisiwljm