Optimization Multi-Item Lot Sizing Model involve Transportation and Capacity Constraint under Stochastic Demand using Aquila Optimizer

Abstract

Inventory issues are often a major concern as they significantly impact operating costs. Lot sizing is one of the key decisions in managing inventory. However, in a real context, the demand for each item is often uncertain. It is supplied from the same supplier, requiring product orders to be placed in the same period. In addition, limited vehicle capacity and transportation costs are important factors to consider in making multi-item lot sizing decisions. The purpose of this study is to propose a new inventory model multi-item lot sizing model involving transportation cost and capacity constraints under stochastic demand. The decision variables involved in the model are each item's ordering cycle and safety factor with the objective function of minimizing the total inventory cost. To optimize the inventory model, this study also offers the advanced procedure of the Aquila Algorithm. This study also presents sensitivity analysis to the appropriate policy for optimizing the multi-item lot-sizing inventory problem involving transportation cost and capacity constraint under stochastic demand.