Abstract

An inventory control system having multiple items in stock is developed in this paper to optimize total cost of inventory and space requirement. Inventory modeling for both the raw material storage and work in process (WIP) is designed considering independent demand rate of items and no volume discount. To make the model environmentally aware, the equivalent carbon emission cost is also incorporated as a cost function in the formulation. The purpose of this study is to minimize the cost of inventories and minimize the storage space needed. The inventory models are shown here as a multi-objective programming problem with a few nonlinear constraints which has been solved by proposing a meta-heuristic algorithm called multi-objective particle swarm optimization (MOPSO). A further meta-heuristic algorithm called multi-objective bat algorithm (MOBA) is used to determine the efficacy of the result obtained from MOPSO. Taguchi method is followed to tune necessary response variables and compare both algorithm's output. At the end, several test problems are generated to evaluate the performances of both algorithms in terms of six performance metrics and analyze them statistically and graphically.

Highlights

  • Advanced supply chain of any manufacturing organization has to deal with many conflicting objectives to earn profit and customer satisfaction at the same time

  • A multi-item inventory control problem was investigated in this paper with the aim of minimizing both the total cost of inventory and the total storage space required

  • The problem was first formulated as a raw material inventory control model and after that as a work in process (WIP) inventory control model

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Summary

Introduction

Advanced supply chain of any manufacturing organization has to deal with many conflicting objectives to earn profit and customer satisfaction at the same time. It is an ongoing process of integrating all the processes involved from manufacturing a product towards final consumption and after sales services. Items that are in the middle of production have equal responsibility towards the finished goods inventory. In a word, this classic scenario of managing stock holding is appropriately termed as inventory management.

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