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

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  • Asoke Kumar Bhunia
  • Ali Akbar Shaikh

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.

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  • Asoke Kumar Bhunia & Ali Akbar Shaikh, 2016. "Investigation of two-warehouse inventory problems in interval environment under inflation via particle swarm optimization," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 22(2), pages 160-179, March.
    • Handle: RePEc:taf:nmcmxx:v:22:y:2016:i:2:p:160-179
    DOI: 10.1080/13873954.2016.1150860
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    References listed on IDEAS

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    Cited by:

    1. Anushri Maji & Asoke Kumar Bhunia & Shyamal Kumar Mondal, 2022. "A production-reliability-inventory model for a series-parallel system with mixed strategy considering shortage, warranty period, credit period in crisp and stochastic sense," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 862-907, September.
    2. Md. Al-Amin Khan & Ali Akbar Shaikh & Gobinda Chandra Panda & Asoke Kumar Bhunia & Ioannis Konstantaras, 2020. "Non-instantaneous deterioration effect in ordering decisions for a two-warehouse inventory system under advance payment and backlogging," Annals of Operations Research, Springer, vol. 289(2), pages 243-275, June.

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