A Bi-objective Non-linear Approach for Determining the Ordering Strategy for Group B in ABC Analysis Inventory

Subject Areas : Business Administration and Entrepreneurship

Fatemeh  Keshavarz-Ghorbani ¹ (Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran)
Seyed Hamid Reza  Pasandideh ² (Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran)

Received: 2019-03-08 Accepted : 2021-09-02 Published : 2022-06-01

Keywords: bi-objective, Statistical Analysis, ABC Analysis, ordering strategy,

Abstract :

The main aim of this research is to find the best inventory review policy for different types of items in group B in ABC analysis through minimizing the total cost of the system and maximizing the service level. Moreover, this study has considered several operational constraints such as limitations on storage space, number of orders, and allowable shortage. To solve this problem, first, an individual optimization method is utilized to obtain optimal solutions. Then, two classic and novel multi-objective optimization methods have been used to convert the bi-objective problem to a single-objective and reach the near-optimal solutions for both objectives simultaneously. Finally, the proposed methods are compared in terms of objective function values and computational time to find the better method.

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