Abstract: We consider a two-echelon inventory management problem, where customers’ requests for spare parts of different types must be fulf illed within a given service level threshold. The supply system is composed of multiple warehouses in the first echelon, where the customers’ requests are processed, and a single second-echelon warehouse, replenishing stocks of the first-echelon warehouses. Replenishment requests of warehouses are invoked according to inventory policies, which are characterized by one or two numerical parameters and are individual for each warehouse and each spare part type. The goal is to minimize the total storage cost for all warehouses at both echelons. System operation is simulated within a black-box function that computes the request satisfaction rate and inventory holding costs depending on the policy parameters. In the work, we propose a decomposition approach to adjust these parameters for an industrial-sized supply system. Computational experiments for up to 1,000 types of items and 100 warehouses are discussed.

Cite: Yuskov A. , Kulachenko I.N. , Melnikov A. , Kochetov Y.
Decomposition Approach for Simulation-Based Optimization of Inventory Management
In compilation Mathematical Optimization Theory and Operations Research: Recent Trends. – Springer., 2023. – Т.1881. – C.259-273. DOI: 10.1007/978-3-031-43257-6_20 Scopus OpenAlex

Dates:

Published print:	Sep 21, 2023
Published online:	Sep 21, 2023

Identifiers:

Scopus:	2-s2.0-85174627019
OpenAlex:	W4386891743

Citing:

DB	Citing
OpenAlex	1

Altmetrics: