A multi objective model for determining ordering strategy within different constraints

Abstract

In this paper, we developed two models for a constrained multi products inventory control with stochastic demand under continuous review policy. We considered stochastic constraints such as warehouse space and restriction on order quantity. We assumed shortages are allowed. In the first model, shortages are completely backordered and in the second model, we consider lost sale for shortages. Two conflicting objectives considered in these problems are: 1) minimising the total cost; 2) maximising the service level. The problems are formulated into bi-objective non-linear programming models. Then, to solve the problems using GAMS software, five multi objective decision making (MODM) methods are proposed. Finally, we analysed the results of numerical examples by Tukey test .