A multi-item mixture inventory model involving random lead time and demand with budget constraint and surprise function

Abstract

a b s t r a c tThis study deals with a multi-item mixture inventory model in which both demand and lead time are random. A budget constraint is also added to this model. The optimization problem with budget constraint is then transformed into a multi-objective optimization problem with the help of fuzzy chance-constrained programming technique and surprise function. In our studies, we relax the assumption about the demand, lead time and demand during lead time that follows a known distribution and then apply the minimax distribution free procedure to solve the problem. We develop an algorithm procedure to find the optimal order quantity and optimal value of the safety factor. Finally, the model is illustrated by a numerical example.

A practical model for managing inventories with unknown costs and a budget constraint

“…This same experience indicates that what managers accurately know is the set of constraints that have to be considered to manage inventories. The literature also supports that space and other physical resources limit the capacity to store items (Choi and Noble 2000;Gholami-Qadikolaei, Mirzazadeh, and Tavakkoli-Moghaddam 2015;Pasandideh and Niaki 2008;Pasandideh, Niaki, and Nia 2011), and monetary limitations constrain the value of inventories to be stocked (Bera et al 2009;Gholami-Qadikolaei, Mirzazadeh, and Tavakkoli-Moghaddam 2015;Schrady and Choe 1971). Similar constraints apply to set-up; for instance, the number of orders that can be launched per year (Muckstadt and Sapra 2010).…”

An Equilibrium Chance-Constrained Multiobjective Programming Model with Birandom Parameters and Its Application to Inventory Problem

“…In fact, for many enterprises, especially supermarkets, it is necessary to prepare hundreds of goods to meet the needs of different consumers. Therefore, multiitem inventory problem research has become more attractive for researchers [6][7][8][9].…”

Optimization of Reorder Point Strategy of Assembly Manufacturer with Random Variables

“…Models of multi-item stochastic inventory system with backordered shortages when estimation of marginal backorder cost is available, and payment is due upon order arrival. The budget constraint can easily be converted into a storage constraint (Ghalebsaz-Jeddi, Shultes et al 2004;Bera, Rong et al 2009). Probabilistic lead-time is considered and shortages are allowed In any business, placement of an order is normally connected with the advance payment ).…”

“…A budget constraint is also added to this model. The optimization problem with budget constraint is then transformed into a multi-objective optimization problem (Bera, Rong et al 2009). …”