A bi-objective multi-period series-parallel inventory-redundancy allocation problem with time value of money and inflation considerations

We formulate a multi-component multi-period series-parallel inventory redundancy allocation problem.We consider time value of money and inflation rate in optimizing the problem.We find the optimal order quantity for each subsystem by optimizing inventory costs and reliability, concurrently.CE-NRGA, NSGA-II, and MOPSO are used to solve the SPIRAP.Numerical examples demonstrate the applicability of the algorithms. A large number of existing research studies on reliability redundancy allocation problems do not take into consideration the time value of the money and the inflations costs associated with the component inventories. In this study, we formulate a multi-component multi-period series-parallel inventory redundancy allocation problem (SPIRAP) as a mixed-integer nonlinear mathematical model where: (a) the costs are calculated by considering the time value of money and inflation rates; and (b) the total warehouse capacity to store the components, the total budget to purchase the components and the truck capacity are subject to constraints. The primary goal in this study is to find the optimal order quantity of the components for each subsystem in each period such that the total inventory costs are minimized and the system reliability is maximized, concurrently. A controlled elitism non-dominated ranked genetic algorithm (CE-NRGA), a NSGA-II, and a multi-objective particle swarm optimization (MOPSO) are presented to solve the proposed SPIRAP. A series of numerical examples are used to demonstrate the applicability and exhibit the efficacy of the procedures and algorithms. The results reveal that the CE-NRGA outperforms both NSGA-II and MOPSO.

[1]  Qingwei Chen,et al.  Multi-objective reliability redundancy allocation in an interval environment using particle swarm optimization , 2016, Reliab. Eng. Syst. Saf..

[2]  Lothar Thiele,et al.  Multiobjective Optimization Using Evolutionary Algorithms - A Comparative Case Study , 1998, PPSN.

[3]  B. Sarkar,et al.  An inventory model with variable demand, component cost and selling price for deteriorating items , 2013 .

[4]  Yoshikazu Fukuyama,et al.  Practical distribution state estimation using hybrid particle swarm optimization , 2001, 2001 IEEE Power Engineering Society Winter Meeting. Conference Proceedings (Cat. No.01CH37194).

[5]  Seyed Taghi Akhavan Niaki,et al.  A hybrid vendor managed inventory and redundancy allocation optimization problem in supply chain management: An NSGA-II with tuned parameters , 2014, Comput. Oper. Res..

[6]  TavanaMadjid,et al.  A bi-objective inventory optimization model under inflation and discount using tuned Pareto-based algorithms , 2016 .

[7]  Jinn-Tsair Teng,et al.  Two inventory systems with trapezoidal-type demand rate and time-dependent deterioration and backlogging , 2016, Expert Syst. Appl..

[8]  Seyed Hamid Reza Pasandideh,et al.  A priority-based modified encoding–decoding procedure for the design of a bi-objective SC network using meta-heuristic algorithms , 2016 .

[9]  Biswajit Sarkar,et al.  An EOQ model with delay in payments and time varying deterioration rate , 2012, Math. Comput. Model..

[10]  R. Eberhart,et al.  Empirical study of particle swarm optimization , 1999, Proceedings of the 1999 Congress on Evolutionary Computation-CEC99 (Cat. No. 99TH8406).

[11]  Biswajit Sarkar,et al.  Easy and Improved Algorithms to Joint Determination of the Replenishment Lot Size and Number of Shipments for an Epq Model with Rework , 2013 .

[12]  B. Sarkar.  Supply Chain Coordination with Variable Backorder, Inspections, and Discount Policy for Fixed Lifetime Products , 2016 .

[13]  Samad Ahmadi,et al.  Optimizing a bi-objective reliable facility location problem with adapted stochastic measures using tuned-parameter multi-objective algorithms , 2016, Knowl. Based Syst..

[14]  Steven Li,et al.  Solving the redundancy allocation problem with multiple strategy choices using a new simplified particle swarm optimization , 2015, Reliab. Eng. Syst. Saf..

[15]  Madjid Tavana,et al.  A bi-objective inventory optimization model under inflation and discount using tuned Pareto-based algorithms: NSGA-II, NRGA, and MOPSO , 2016, Appl. Soft Comput..

[16]  Jason R. Schott.  Fault Tolerant Design Using Single and Multicriteria Genetic Algorithm Optimization. , 1995 .

[17]  Seyed Hamid Reza Pasandideh,et al.  A bi-objective remanufacturing problem within queuing framework: An imperialist competitive algorithm , 2015 .

[18]  H. S. Shukla,et al.  Economic production quantity model for defective items under deterioration , 2016 .

[19]  Seyed Taghi Akhavan Niaki,et al.  Optimizing multi-item multi-period inventory control system with discounted cash flow and inflation: Two calibrated meta-heuristic algorithms , 2013 .

[20]  B. Sarkar,et al.  Partial Trade-Credit Policy of Retailer with Exponentially Deteriorating Items , 2015 .

[21]  Seyed Taghi Akhavan Niaki,et al.  Two parameter tuned multi-objective evolutionary algorithms for a bi-objective vendor managed inventory model with trapezoidal fuzzy demand , 2015, Appl. Soft Comput..

[22]  Mostafa Zandieh,et al.  Bi-objective group scheduling in hybrid flexible flowshop: A multi-phase approach , 2010, Expert Syst. Appl..

[23]  Biswajit Sarkar,et al.  Retailer’s optimal strategy for fixed lifetime products , 2016, Int. J. Mach. Learn. Cybern..

[24]  Ehsan Ameri,et al.  A robust loss function approach for a multi-objective redundancy allocation problem , 2016 .

[25]  BahreininejadArdeshir,et al.  Optimizing a location allocation-inventory problem in a two-echelon supply chain network , 2015 .

[26]  Seyed Taghi Akhavan Niaki,et al.  An improved fruit fly optimization algorithm to solve the homogeneous fuzzy series–parallel redundancy allocation problem under discount strategies , 2016, Soft Comput..

[27]  Wei Xie,et al.  Maximizing system availability through joint decision on component redundancy and spares inventory , 2014, Eur. J. Oper. Res..

[28]  Seyed Taghi Akhavan Niaki,et al.  An efficient memory-based electromagnetism-like mechanism for the redundancy allocation problem , 2016, Appl. Soft Comput..

[29]  Nirmal Kumar Duari,et al.  A cash flow-oriented EOQ model of deteriorating items with increasing demand rate and shortages under permissible delay in payment , 2015 .

[30]  Madjid Tavana,et al.  Multi-objective multi-layer congested facility location-allocation problem optimization with Pareto-based meta-heuristics , 2016 .

[31]  B. Sarkar,et al.  Variable deterioration and demand—An inventory model , 2013 .

[32]  Biswajit Sarkar,et al.  A production-inventory model with probabilistic deterioration in two-echelon supply chain management , 2013 .

[33]  Kannan Govindan,et al.  Two-echelon multiple-vehicle location-routing problem with time windows for optimization of sustainable supply chain network of perishable food , 2014 .

[34]  Adrijit Goswami,et al.  A two-warehouse inventory model with increasing demand and time varying deterioration , 2012 .

[35]  Dharmendra Yadav,et al.  Retailer's optimal policy under inflation in fuzzy environment with trade credit , 2015, Int. J. Syst. Sci..

[36]  Shyamal Kumar Mondal,et al.  Two storage inventory problem with dynamic demand and interval valued lead-time over finite time horizon under inflation and time-value of money , 2008, Eur. J. Oper. Res..

[37]  Ardeshir Bahreininejad,et al.  Optimizing a location allocation-inventory problem in a two-echelon supply chain network: A modified fruit fly optimization algorithm , 2015, Comput. Ind. Eng..

[38]  Neeraj Kumar,et al.  Effect of learning and salvage worth on an inventory model for deteriorating items with inventory-dependent demand rate and partial backlogging with capability constraints , 2016 .

[39]  Sarla Pareek,et al.  Fuzzy EOQ models for deterioration items under discounted cash flow approach when supplier credits are linked to order quantity , 2015 .

[40]  Seyed Taghi Akhavan Niaki,et al.  Three self-adaptive multi-objective evolutionary algorithms for a triple-objective project scheduling problem , 2015, Comput. Ind. Eng..

[41]  S. Niaki,et al.  Two tuned multi-objective meta-heuristic algorithms for solving a fuzzy multi-state redundancy allocation problem under discount strategies , 2015 .

[42]  Ardeshir Bahreininejad,et al.  A modified particle swarm optimization for solving the integrated location and inventory control problems in a two-echelon supply chain network , 2014, Journal of Intelligent Manufacturing.

[43]  Sachin Maheshwari,et al.  Multi-objective optimization of electric-discharge machining process using controlled elitist NSGA-II , 2012 .

[44]  Isha Sangal,et al.  A two-warehouse production inventory model with trade credit under reliability consideration , 2016 .

[45]  Leopoldo Eduardo Cárdenas-Barrón,et al.  An inventory model with trade-credit policy and variable deterioration for fixed lifetime products , 2015, Ann. Oper. Res..

[46]  S. Singh,et al.  A reverse logistic inventory model for imperfect production process with preservation technology investment under learning and inflationary environment , 2016 .

[47]  Genqi Xu,et al.  Stability analysis of a complex standby system with constant waiting and different repairman criteria incorporating environmental failure , 2009 .

[48]  Seyed Taghi Akhavan Niaki,et al.  Bi-objective optimization of a multi-product multi-period three-echelon supply chain problem under uncertain environments: NSGA-II and NRGA , 2015, Inf. Sci..

[49]  M. Maiti,et al.  A production-repairing inventory model with fuzzy rough coefficients under inflation and time value of money , 2013 .

[50]  Biswajit Sarkar,et al.  Integrated vendor-buyer supply chain model with vendor's setup cost reduction , 2013, Appl. Math. Comput..

[51]  Shib Sankar Sana,et al.  Optimal reliability, production lotsize and safety stock: an economic manufacturing quantity model , 2010 .