Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming Approach
<b>Abstract:</b> Inventory supply chain planning involves determining the quantity of products to be transported among entities within a specified planning horizon. Often, inventory levels are reviewed at set intervals: (1) Background: In this paper, periodic review (s,S) policy is used...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2025-01-01
|
| Series: | Systems |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2079-8954/13/1/33 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832587430565249024 |
|---|---|
| author | Joaquim Jorge Vicente |
| author_facet | Joaquim Jorge Vicente |
| author_sort | Joaquim Jorge Vicente |
| collection | DOAJ |
| description | <b>Abstract:</b> Inventory supply chain planning involves determining the quantity of products to be transported among entities within a specified planning horizon. Often, inventory levels are reviewed at set intervals: (1) Background: In this paper, periodic review (s,S) policy is used to optimize inventories from an integrated perspective of inventory management across the supply chain. The decision to place an order and the order quantity are based on the inventory level at the review time. If the inventory falls below a certain level (s), an order is placed to replenish it to a target level (S); (2) Methods: The planning model is implemented using a mixed integer linear programming model. It determines the inventory levels, supply levels and the (s) and (S) levels for each entity, as well as the flow of products between them. To test the model, a case study is conducted to demonstrate its applicability; (3) Results: The experimental data confirm the model’s validity, as its behavior aligns with the expectations for a periodic review (s,S) policy; (4) Conclusions: Since a fixed replenishment frequency is mandatory, with no continuous inventory review required, this policy offers simplicity and ease of implementation, making it a practical choice for certain inventory management. |
| format | Article |
| id | doaj-art-6d52fda4dd6044a8887917e1c8859788 |
| institution | Kabale University |
| issn | 2079-8954 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Systems |
| spelling | doaj-art-6d52fda4dd6044a8887917e1c88597882025-01-24T13:50:33ZengMDPI AGSystems2079-89542025-01-011313310.3390/systems13010033Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming ApproachJoaquim Jorge Vicente0Centro de Investigação em Gestão (CIGEST), Instituto Superior de Gestão, ISG-Business & Economics School, R. Prof. Reinaldo dos Santos, 1500-552 Lisbon, Portugal<b>Abstract:</b> Inventory supply chain planning involves determining the quantity of products to be transported among entities within a specified planning horizon. Often, inventory levels are reviewed at set intervals: (1) Background: In this paper, periodic review (s,S) policy is used to optimize inventories from an integrated perspective of inventory management across the supply chain. The decision to place an order and the order quantity are based on the inventory level at the review time. If the inventory falls below a certain level (s), an order is placed to replenish it to a target level (S); (2) Methods: The planning model is implemented using a mixed integer linear programming model. It determines the inventory levels, supply levels and the (s) and (S) levels for each entity, as well as the flow of products between them. To test the model, a case study is conducted to demonstrate its applicability; (3) Results: The experimental data confirm the model’s validity, as its behavior aligns with the expectations for a periodic review (s,S) policy; (4) Conclusions: Since a fixed replenishment frequency is mandatory, with no continuous inventory review required, this policy offers simplicity and ease of implementation, making it a practical choice for certain inventory management.https://www.mdpi.com/2079-8954/13/1/33inventory policysupply chain optimizationinventory planningmixed integer linear programming |
| spellingShingle | Joaquim Jorge Vicente Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming Approach Systems inventory policy supply chain optimization inventory planning mixed integer linear programming |
| title | Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming Approach |
| title_full | Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming Approach |
| title_fullStr | Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming Approach |
| title_full_unstemmed | Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming Approach |
| title_short | Optimizing Supply Chain Inventory: A Mixed Integer Linear Programming Approach |
| title_sort | optimizing supply chain inventory a mixed integer linear programming approach |
| topic | inventory policy supply chain optimization inventory planning mixed integer linear programming |
| url | https://www.mdpi.com/2079-8954/13/1/33 |
| work_keys_str_mv | AT joaquimjorgevicente optimizingsupplychaininventoryamixedintegerlinearprogrammingapproach |