Investigation of two-warehouse inventory problems in interval environment under inflation via particle swarm optimization

ABSTRACT In this paper, a two-warehouse inventory problem has been investigated under inflation with different deterioration effects in two separate warehouses (rented warehouse, RW, and owned warehouse, OW). The objective of this investigation is to determine the lot-size of the cycle of the two-warehouse inventory system by minimizing the average cost of the system. Considering different inventory policies, the corresponding models have been formulated for linear trend in demand and interval valued cost parameters. In OW, shortages, if any, are allowed and partially backlogged with a variable rate dependent on the duration of the waiting time up to the arrival of the next lot. The corresponding optimization problems have been formulated as non-linear constrained optimization problems with interval parameters. These problems have been solved by an efficient soft computing method, viz. practical swarm optimization. To illustrate the model, a numerical example has been solved with different partially backlogging rates. Then to study the effect of changes of different system parameters on the optimal policy, sensitivity analyses have been carried out graphically by changing one parameter at a time and keeping the others at their original values. Finally, a fruitful conclusion has been reached regarding the selection of an appropriate inventory policy of the two-warehouse system.

[1]  Asoke Kumar Bhunia,et al.  Interval oriented multi-section techniques for global optimization , 2009 .

[2]  Wenbo Xu,et al.  An improved quantum-behaved particle swarm optimization algorithm with weighted mean best position , 2008, Appl. Math. Comput..

[3]  Hongying He,et al.  An Improved Quantum-behaved Particle Swarm Optimization Algorithm Based on Random Weight , 2013, J. Softw..

[4]  Ali Akbar Shaikh,et al.  A deterministic model for deteriorating items with displayed inventory level dependent demand rate incorporating marketing decisions with transportation cost , 2011 .

[5]  Jun Sun,et al.  A global search strategy of quantum-behaved particle swarm optimization , 2004, IEEE Conference on Cybernetics and Intelligent Systems, 2004..

[6]  S. K. Goel,et al.  Optimal order policy for deteriorating items with inflation induced demand , 2006 .

[7]  Hui-Ling Yang.  Two-warehouse partial backlogging inventory models for deteriorating items under inflation , 2006 .

[8]  D. W. Kim,et al.  The Price and Production Level of the Deteriorating Inventory System. , 1983 .

[9]  Wenbo Xu,et al.  Adaptive Parameter Selection of Quantum-Behaved Particle Swarm Optimization on Global Level , 2005, ICIC.

[10]  Jinxing Xie,et al.  A note on "Two-warehouse inventory model with deterioration under FIFO dispatch policy" , 2008, Eur. J. Oper. Res..

[11]  Ali Akbar Shaikh,et al.  A two warehouse deterministic inventory model for deteriorating items with a linear trend in time dependent demand over finite time horizon by Elitist Real-Coded Genetic Algorithm , 2013 .

[12]  P. M. Ghare.  A model for an exponentially decaying inventory , 1963 .

[13]  Hui-Ling Yang,et al.  Two-warehouse inventory models for deteriorating items with shortages under inflation , 2004, Eur. J. Oper. Res..

[14]  Wenbo Xu,et al.  Particle swarm optimization with particles having quantum behavior , 2004, Proceedings of the 2004 Congress on Evolutionary Computation (IEEE Cat. No.04TH8753).

[15]  Ramon E. Moore.  Methods and applications of interval analysis , 1979, SIAM studies in applied mathematics.

[16]  J. Buzacott.  Economic Order Quantities with Inflation , 1975 .

[17]  M. Clerc,et al.  The swarm and the queen: towards a deterministic and adaptive particle swarm optimization , 1999, Proceedings of the 1999 Congress on Evolutionary Computation-CEC99 (Cat. No. 99TH8406).

[18]  Zhao Pei-xin,et al.  An EOQ Model for Items with Weibull Distribution Deterioration , 2007, 2007 2nd IEEE Conference on Industrial Electronics and Applications.

[19]  S. Aggarwal,et al.  Credit financing in economic ordering policies of deteriorating items , 1994 .

[20]  Kun-Jen Chung,et al.  An inventory model with non-instantaneous receipt and exponentially deteriorating items for an integrated three layer supply chain system under two levels of trade credit , 2014 .

[21]  Barun Das,et al.  A two warehouse supply-chain model under possibility/ necessity/credibility measures , 2007, Math. Comput. Model..

[22]  Priyanka Verma,et al.  Two-warehouse partial backlogging inventory model for deteriorating items with linear trend in demand under inflationary conditions , 2011, Int. J. Syst. Sci..

[23]  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..

[24]  G. Padmanabhan,et al.  An inventory model under inflation for stock dependent consumption rate items , 1990 .

[25]  H. Bierman,et al.  INVENTORY DECISIONS UNDER INFLATIONARY CONDITIONS , 1977 .

[26]  H. Wee,et al.  Replenishment and pricing policy for deteriorating items taking into account the time-value of money , 2001 .

[27]  Russell C. Eberhart,et al.  A new optimizer using particle swarm theory , 1995, MHS'95. Proceedings of the Sixth International Symposium on Micro Machine and Human Science.

[28]  Leandro dos Santos Coelho,et al.  Gaussian quantum-behaved particle swarm optimization approaches for constrained engineering design problems , 2010, Expert Syst. Appl..

[29]  J. A. C. C. Watson-Gandy.  Operations Research—A Managerial Emphasis , 1977 .

[30]  Riccardo Poli,et al.  Particle swarm optimization , 1995, Swarm Intelligence.

[31]  T. Datta,et al.  Effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate and shortages , 1991 .

[32]  R. S. Sachan.  On (T, Si) Policy Inventory Model for Deteriorating Items with Time Proportional Demand , 1984 .

[33]  Maurice Clerc,et al.  The particle swarm - explosion, stability, and convergence in a multidimensional complex space , 2002, IEEE Trans. Evol. Comput..

[34]  Ali Akbar Shaikh,et al.  A deterministic inventory model for deteriorating items with selling price dependent demand and three-parameter Weibull distributed deterioration , 2014 .

[35]  Asoke Kumar Bhunia,et al.  Genetic algorithm based multi-objective reliability optimization in interval environment , 2012, Comput. Ind. Eng..

[36]  R. K. Gupta,et al.  A study on two-warehouse partially backlogged deteriorating inventory models under inflation via particle swarm optimisation , 2015, Int. J. Syst. Sci..

[37]  Y. K. Shah.  An Order-Level Lot-Size Inventory Model for Deteriorating Items , 1977 .

[38]  Manoranjan Maiti,et al.  A two warehouse inventory model for a deteriorating item with partially/fully backlogged shortage and fuzzy lead time , 2008, Eur. J. Oper. Res..

[39]  Jiang Wu,et al.  Optimal credit period and lot size for deteriorating items with expiration dates under two-level trade credit financing , 2014, Eur. J. Oper. Res..

[40]  Maw-Sheng Chern,et al.  Deterministic inventory lot-size models under inflation with shortages and deterioration for fluctuating demand , 2001 .

[41]  Liang-Yuh Ouyang,et al.  Determining optimal lot size for a two-warehouse system with deterioration and shortages using net present value , 2008, Eur. J. Oper. Res..