The IX Metaheuristics International Conference S 1 – 37 – 1 Applying PSO and DE on Multi – Item Inventory Problem with Supplier Selection

We apply Particle Swarm Optimization (PSO) and Differential Evolution (DE) on a multi‐item inventory optimization model with supplier selection, limited capacity and defective items. The model assumes an individual cost per transaction as well as a product‐dependent holding cost. The goal is the determination of an optimal procurement strategy given the demand over a finite planning horizon. This is formulated as a highly‐constrained mixed‐integer optimization problem, which is solved using PSO and DE. In addition, the original mixed‐integer model is reduced to a real‐ parameter optimization task and solved with the same algorithms. The results for both approaches are reported and statistically analyzed, offering useful i nsight regarding the most promising setting.

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