OPTIMAL INVENTORY POLICY USING ASSIGNMENT MODEL AS MIXED INTEGER LINEAR PROGRAMMING PROBLEM

Abstract

This article discusses the assignment model as a mixed integer linear programming problem used in determining inventory policy for the multi-item case with backorder using the branch-and-bound method. The assignment model used must meet the specified constraints. The LINGO 18.0 application is used to solve mixed integer linear programming problems from the inventory problem assignment model. The optimal solution obtained from the assignment model uses the LINGO 18.0 application, which is based on the branch-and-bound method compared to the EOQ model with backorder. The results obtained from the comparison of these two models can be concluded to show that the inventory problem provides more optimal value using the assignment model as a mixed integer linear programming problem compared to using the EOQ model with backorder.