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A Tri-objective model for multi-product multi-period inventory planning with substitutable goods and random demand
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R. Sadeghian   , A. H. Hassani , N. S. Mohajerani |
| Department of Industrial Engineering, Payame Noor University, Tehran, Iran |
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Abstract: (996 Views) |
| The performed studies show that considering substitution goods can be profitable. The substitution is replacing one product with another in an inventory system. When a product has a shortage, a certain percentage of its demand can be replaced with similar goods. In this paper, a Tri-objective model with the substitution assumptions is considered. In here, the substitution means that there is a relation between different items that allows these items to be used instead of each other. Demands are considered probabilistic and there are some other assumptions as follows: planning is multi-period and multi product, inventory control parameters are fixed during the planning period. The shortage is allowed, but in the form of lost sale, the inventory of the beginning of the first period is very few (almost zero) and the remaining inventory at the end of each period will be moved to the next period. Objective functions are looking for maximizing the profit, minimizing the risk of facing slack and minimizing of the dissatisfaction arising from the substitution. Model is solved with two approaches: first with the LP-Metric method and next by two meta-heuristic algorithms such as NSGA-II and Deferential Evolution. Most researches have focused on profit maximization or costs minimization. The current paper considers a multi-product and multi-period triple-objective model. The goods may be substituted with similar ones. The results of solving the model indicate that if there is a relation between the products items, considering this relationship in modeling, will lead to improved results. A part of this improvement is a result of reduced maintenance cost. With the substitution of items, we can both increase our profits and sell items that their expiry date is near to finish (arrangement type of substitution) and avoid loses. |
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| Keywords: Inventory Planning, Substitute Products, Multi-Product, Multi-Period, Meta-Heuristic |
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Full-Text [PDF 636 kb]
(826 Downloads)
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Type of Study: Research |
Subject:
General
Received: 2022/03/9 | Accepted: 2022/08/20
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