A Multi-Objective Model for Inventory Management of the Integrated Multi-Product Supply Chain Considering Central Warehouse and Potential Demand

Abstract

In this research, an inventory management model is developed by the seller for a three-echelon supply chain, which also includes a central warehouse, along with order constraints. In this method, the seller monitors the level of inventory of the retailer so that it determines the time and amount of products for the seller and the retailer and reduces the inventory costs for the seller and the retailer. Sales inventory management in the supply chain has an integrated approach to planning and controlling materials and information in the production and distribution chain, transportation, warehouses and customers. One of the objectives of the proposed mathematical model is to determine the inventory of retailers, vendors, central warehouse and the optimal refund rate for the seller and central warehouse, which ultimately leads to a reduction in the cost of the entire system. In this study, after presenting a three-objective mathematical model to study the three-level supply chain by considering several retailers and multiple vendors and the central warehouse, the model is solved using GAMS software by the Epsilon constraint method and to test. The validation of the proposed model is examined by providing an example of the proposed model.