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A multi-objective simulation-based optimization approach for inventory replenishment problem with premium freights in convergent supply chains

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  • Avci, Mualla Gonca
  • Selim, Hasan

Abstract

In this study, a multi-objective simulation-based optimization approach is developed to solve inventory replenishment problem with premium freights in convergent supply chains. In this context, a decomposition-based multi-objective differential evolution algorithm (MODE/D) is used to determine demand forecast adjustment factor, safety stock and supplier flexibility parameters that minimize total holding cost, inbound and outbound premium freight ratios simultaneously. The proposed approach is applied a set of problem instances and the performance of the proposed approach is evaluated in comparison with the performance of non-dominated sorting genetic algorithm-II (NSGA-II). Furthermore, the proposed approach is applied to a multi-national automotive supply chain spread on Europe. The results reveal that the proposed approach is effective in solving inventory replenishment problem with premium freights in convergent supply chains.

Suggested Citation

  • Avci, Mualla Gonca & Selim, Hasan, 2018. "A multi-objective simulation-based optimization approach for inventory replenishment problem with premium freights in convergent supply chains," Omega, Elsevier, vol. 80(C), pages 153-165.
    • Handle: RePEc:eee:jomega:v:80:y:2018:i:c:p:153-165
    DOI: 10.1016/j.omega.2017.08.016
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    5. Ömer Faruk Yılmaz & Büşra Yazıcı, 2022. "Tactical level strategies for multi-objective disassembly line balancing problem with multi-manned stations: an optimization model and solution approaches," Annals of Operations Research, Springer, vol. 319(2), pages 1793-1843, December.
    6. Dai, B. & Chen, H.X. & Li, Y.A. & Zhang, Y.D. & Wang, X.Q. & Deng, Y.M., 2021. "Inventory replenishment planning of a distribution system with storage capacity constraints and multi-channel order fulfilment," Omega, Elsevier, vol. 102(C).
    7. Nguyen, Duy Tan & Adulyasak, Yossiri & Landry, Sylvain, 2021. "Research manuscript: The Bullwhip Effect in rule-based supply chain planning systems–A case-based simulation at a hard goods retailer," Omega, Elsevier, vol. 98(C).
    8. Gonçalves, João N.C. & Sameiro Carvalho, M. & Cortez, Paulo, 2020. "Operations research models and methods for safety stock determination: A review," Operations Research Perspectives, Elsevier, vol. 7(C).

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