Design of multi-warehouse inventory model for an optimal replenishment policy using a Rain Optimization Algorithm

Abstract

In most of the inventory management model, deterioration of item is considered as a common problem. In this study, non-instantaneous type of items are taken to examine a new decision making model of Optimal Replenishment Policy (ORP) scheme with multi-ware house multi-item model. This model is solved by a recent optimization algorithm named as Rain Optimization Algorithm (ROA) by considering different parameters like total cost, total delivery time and total investment on each item. Moreover, this research is developed with multi-warehouse model in which one is an own house and others are rented houses with restricted volume of storage. In particular period of time, deterioration of item is considered as constant and demand of items are assumed as stock independent. Shortage are allowed in the own warehouse model with backlogging. Major goal of this research is to discover retailers’ replenishment policy to obtain maximum total profit on each items with less total cost. Matlab tool is utilized to illustrate the proposed methodology as well as to solve the mathematical model. Footwear inventory management dataset engaged to evaluate the robustness of proposed methodology. Sensitivity and statistical analysis are made to examine the influence of different significant metrics on system decision variables and its outcomes are compared with different optimization algorithms.