IDEAS home Printed from https://ideas.repec.org/a/eee/matcom/v206y2023icp664-688.html
   My bibliography  Save this article

An efficient optimization procedure for location-inventory problems with (S-1, S) policy and retrial demands

Author

Listed:
  • Wang, Fong-Fan

Abstract

In this research, we used an easy and efficient computation procedure for deriving performance measures of (S-1, S) inventory problems with M/M/c replenishment under a retrial demand scenario. We prove some properties of the studied problem and also under back-ordered demands for comparison. We apply our method to a capacity design problem and a location-inventory design problem. For both problems, we used our method combined with direct search and genetic algorithm (GA) for optimization and compare with matrix geometric method (MGM) based evaluation and other optimization methods, including enumeration and FICO Xpress Mosel. Numerical examples show our method is about ten times more efficient than MGM-based evaluation and outperforms the other optimization methods. To find if the solution can be improved, we compare GA with other meta-heuristics, including simulated annealing, particle swarm optimization, and ant colony optimization. Finally, a sensitivity study for the location-inventory design problem is investigated.

Suggested Citation

  • Wang, Fong-Fan, 2023. "An efficient optimization procedure for location-inventory problems with (S-1, S) policy and retrial demands," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 206(C), pages 664-688.
    • Handle: RePEc:eee:matcom:v:206:y:2023:i:c:p:664-688
    DOI: 10.1016/j.matcom.2022.12.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378475422004979
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.matcom.2022.12.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ebrahim Teimoury & Mohammad Modarres Yazdi & Iman Ghaleh Khondabi & Mahdi Fathi, 2011. "Two-Facility Location Problem with Infinite Retrial Queue," International Journal of Strategic Decision Sciences (IJSDS), IGI Global, vol. 2(3), pages 38-54, July.
    2. Berman, Oded & Krass, Dmitry & Tajbakhsh, M. Mahdi, 2012. "A coordinated location-inventory model," European Journal of Operational Research, Elsevier, vol. 217(3), pages 500-508.
    3. Douglas C. Montgomery & M. S. Bazaraa & Ajit K. Keswani, 1973. "Inventory models with a mixture of backorders and lost sales," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 20(2), pages 255-263, June.
    4. Ahmadi Javid, Amir & Azad, Nader, 2010. "Incorporating location, routing and inventory decisions in supply chain network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 582-597, September.
    5. J. Artalejo & A. Krishnamoorthy & M. Lopez-Herrero, 2006. "Numerical analysis of(s, S) inventory systems with repeated attempts," Annals of Operations Research, Springer, vol. 141(1), pages 67-83, January.
    6. Fathi, Mahdi & Khakifirooz, Marzieh & Diabat, Ali & Chen, Huangen, 2021. "An integrated queuing-stochastic optimization hybrid Genetic Algorithm for a location-inventory supply chain network," International Journal of Production Economics, Elsevier, vol. 237(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manik Debnath & Sanat Kr. Mazumder & Md Billal Hossain & Arindam Garai & Csaba Balint Illes, 2023. "Optimal Base-Stock Inventory-Management Policies of Cement Retailers under Supply-Side Disruptions," Mathematics, MDPI, vol. 11(18), pages 1-34, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fathi, Mahdi & Khakifirooz, Marzieh & Diabat, Ali & Chen, Huangen, 2021. "An integrated queuing-stochastic optimization hybrid Genetic Algorithm for a location-inventory supply chain network," International Journal of Production Economics, Elsevier, vol. 237(C).
    2. Behnam Vahdani & Elham Ahmadzadeh, 2021. "Incorporating Price-Dependent Demands into a Multi-Echelon Closed-Loop Network Considering the Lost Sales and Backorders: a Case Study of Wireless Network," Networks and Spatial Economics, Springer, vol. 21(3), pages 639-680, September.
    3. Schuster Puga, Matías & Tancrez, Jean-Sébastien, 2017. "A heuristic algorithm for solving large location–inventory problems with demand uncertainty," European Journal of Operational Research, Elsevier, vol. 259(2), pages 413-423.
    4. Zhang, Ying & Qi, Mingyao & Miao, Lixin & Liu, Erchao, 2014. "Hybrid metaheuristic solutions to inventory location routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 305-323.
    5. Yanyi Xu & Doğan A. Serel & Arnab Bisi & Maqbool Dada, 2022. "Coping with Demand Uncertainty: The Interplay between Dual Sourcing and Endogenous Partial Backordering," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1560-1575, April.
    6. Wee, Hui-Ming & Huang, Yen-Deng & Wang, Wan-Tsu & Cheng, Yung-Lung, 2014. "An EPQ model with partial backorders considering two backordering costs," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 898-907.
    7. Puntipa Punyim & Ampol Karoonsoontawong & Avinash Unnikrishnan & Chi Xie, 2018. "Tabu Search Heuristic for Joint Location-Inventory Problem with Stochastic Inventory Capacity and Practicality Constraints," Networks and Spatial Economics, Springer, vol. 18(1), pages 51-84, March.
    8. Zhang, Yanzi & Diabat, Ali & Zhang, Zhi-Hai, 2021. "Reliable closed-loop supply chain design problem under facility-type-dependent probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 180-209.
    9. Zhalechian, M. & Tavakkoli-Moghaddam, R. & Zahiri, B. & Mohammadi, M., 2016. "Sustainable design of a closed-loop location-routing-inventory supply chain network under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 182-214.
    10. Drexl, Michael & Schneider, Michael, 2015. "A survey of variants and extensions of the location-routing problem," European Journal of Operational Research, Elsevier, vol. 241(2), pages 283-308.
    11. Mohd Kamarul Irwan Abdul Rahim & El-Houssaine Aghezzaf & Veronique Limère & Birger Raa, 2016. "Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(8), pages 1953-1965, June.
    12. Farheen Naz & Rohit Agrawal & Anil Kumar & Angappa Gunasekaran & Abhijit Majumdar & Sunil Luthra, 2022. "Reviewing the applications of artificial intelligence in sustainable supply chains: Exploring research propositions for future directions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2400-2423, July.
    13. P., Vijaya Laxmi & M.L., Soujanya, 2015. "Perishable inventory system with service interruptions, retrial demands and negative customers," Applied Mathematics and Computation, Elsevier, vol. 262(C), pages 102-110.
    14. Zhao, Jiahong & Ke, Ginger Y., 2017. "Incorporating inventory risks in location-routing models for explosive waste management," International Journal of Production Economics, Elsevier, vol. 193(C), pages 123-136.
    15. Zhang, Zhi-Hai & Unnikrishnan, Avinash, 2016. "A coordinated location-inventory problem in closed-loop supply chain," Transportation Research Part B: Methodological, Elsevier, vol. 89(C), pages 127-148.
    16. Ahmadi-Javid, Amir & Seddighi, Amir Hossein, 2013. "A location-routing problem with disruption risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 63-82.
    17. Escalona, P. & Marianov, V. & Ordóñez, F. & Stegmaier, R., 2018. "On the effect of inventory policies on distribution network design with several demand classes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 229-240.
    18. An, Kun & Ouyang, Yanfeng, 2016. "Robust grain supply chain design considering post-harvest loss and harvest timing equilibrium," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 88(C), pages 110-128.
    19. Ahmadi-Javid, Amir & Amiri, Elahe & Meskar, Mahla, 2018. "A Profit-Maximization Location-Routing-Pricing Problem: A Branch-and-Price Algorithm," European Journal of Operational Research, Elsevier, vol. 271(3), pages 866-881.
    20. Xiaoqing Liu & Felix T. S. Chan & Xinsheng Xu, 2019. "Hedging Risks in the Loss-Averse Newsvendor Problem with Backlogging," Mathematics, MDPI, vol. 7(5), pages 1-23, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:matcom:v:206:y:2023:i:c:p:664-688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/mathematics-and-computers-in-simulation/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.