Using multi-objective electromagnetism-like optimization to analyze inventory tradeoffs under probabilistic demand

This paper studies a bi-objective inventory model that intends to simultaneously determine order size and safety factor without estimating shortage cost or implicitly conducting monetary evaluation of customer service. A solution algorithm based on electromagnetism-like mechanism is employed to analyze tradeof f between expected total relevant cost and expected number of stockout occasion under probabilistic demand. Inventory decisions generated from MOEMO (multi-objective electromagnetism-like optimization) are not easily dominated by traditional methods, but also MOEMO tradeof f spread much wider than those of sequential and simultaneous methods.

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