Towards Sustainable Inventory Management: A Many-Objective Approach to Stock Optimization in Multi-Storage Supply Chains

Abstract

Within the framework of sustainable supply chain management and logistics, this work tackles the complex challenge of optimizing inventory levels across varied storage facilities. It introduces a comprehensive many-objective optimization model designed to minimize holding costs, energy consumption, and shortage risk concurrently, thereby integrating sustainability considerations into inventory management. The model incorporates the distinct energy consumption profiles associated with various storage types and evaluates the influence of stock levels on energy usage. Through an examination of a 60-day production schedule, the dynamic relationship between inventory levels and operational objectives is investigated, revealing a well-defined set of optimal solutions that highlight the trade-off between energy savings and shortage risk. Employing a 30-day rolling forward analysis with daily optimization provides insights into the evolving nature of inventory optimization. Additionally, the model is extended to encompass a five-objective optimization by decomposing shortage risk, offering a nuanced comprehension of inventory risks. The outcomes of this research provide a range of optimal solutions, empowering supply chain managers to make informed decisions that strike a balance among cost, energy efficiency, and supply chain resilience.