Title: Modelling and solving of a lot sizing problem for multiple items and multiple periods with shortage

Authors: Nasim Ganjavi; Reza Tavakkoli-Moghaddam; Seyyed Mojtaba Sajadi

Addresses: Department of Industrial Management, Najafabad Branch, Islamic Azad University, Isfahan, Iran ' Department of Industrial and Systems Engineering, College of Engineering, University of Tehran, Iran ' Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

Abstract: This paper presents a multi-period inventory lot sizing scenario, where there is multiple product and single suppliers. It constructs a goal programming model to determine the order quantities of each product in each period. In this model, three goals are considered: 1) meeting the total available periodic budget, 2) meeting the buyer's maximum acceptable quality, 3) minimise the shortage. Constructing the approach in this way effectively reduces the risk of purchasing. The proposed approach provides flexibility to decision maker in multi-period procurement lot-sizing decisions. In other words, the purchase of any product in any period is determined as by the possibility to get closer to the goals defined in the model. It solves utilising GAMS and meta-heuristic algorithms, and analyses the efficiency of the heuristics. Efficiency of the proposed algorithm by comparing genetic algorithm in large size problems show the proposed algorithm has also better efficiency than genetic algorithm.

Keywords: goal programming; lot sizing; differential evolution; shortages; multiple items; multiple periods; inventory modelling; metaheuristics.

DOI: 10.1504/IJSOM.2015.065974

International Journal of Services and Operations Management, 2015 Vol.20 No.1, pp.102 - 117

Published online: 17 Apr 2015 *

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