Multi-objective optimisation of continuous review inventory system under mixture of lost sales and backorders within different constraints
by Marzieh Keshavarz; Seyed Hamid Reza Pasandideh
International Journal of Logistics Systems and Management (IJLSM), Vol. 29, No. 3, 2018

Abstract: This paper presents a continuous review stochastic inventory control system. The demand of each product assumed stochastic. In inventory models, it is common to assume that unsatisfied demand is backordered. We considered mixture of lost sales and backorders for shortages. We optimised inventory system with finding fraction of demand backordered. Also, we considered service level in model to improve customer satisfaction and compete better in retail environment. We considered two conflicting objectives: 1) minimising the total cost; 2) maximising the service level. The goal is to generate more diverse and better non-dominated solutions of reorder point, order size and fraction of demand backordered such that the total inventory cost is minimised and the service level is maximised. We considered constraints such as warehouse space, order quantity and restriction on available budget. Constraints are stochastic and follow normal distribution. Two multi-objective optimiser multi-objective particle swarm optimisation (MOPSO) and non-dominated sorting genetic algorithm (NSGA-II) is proposed to solve the problem. We compared the performance of two proposed algorithms with TOPSIS and statistical method. In this comparison, the optimum values of the NSGA-II parameters were obtained using regression analysis.

Online publication date: Tue, 16-Jan-2018

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Logistics Systems and Management (IJLSM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com