Authors: Seyed Hamid Reza Pasandideh; Marziye Keshavarz
Addresses: Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran ' Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran
Abstract: In this paper, we developed two models for a constrained multi products inventory control with stochastic demand under continuous review policy. We considered stochastic constraints such as warehouse space and restriction on order quantity. We assumed shortages are allowed. In the first model, shortages are completely backordered and in the second model, we consider lost sale for shortages. Two conflicting objectives considered in these problems are: 1) minimising the total cost; 2) maximising the service level. The problems are formulated into bi-objective non-linear programming models. Then, to solve the problems using GAMS software, five multi objective decision making (MODM) methods are proposed. Finally, we analysed the results of numerical examples by Tukey test.
Keywords: backorders; lost sales; continuous review policy; MODM techniques; multiobjective modelling; ordering strategies; stochastic constraints; inventory control; stochastic demand; shortages; multiobjective decision making.
International Journal of Mathematics in Operational Research, 2015 Vol.7 No.1, pp.52 - 68
Available online: 08 Nov 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article