Tradeoff Analysis for Optimal Multiobjective Inventory Model
Deterministic inventory model, the economic order quantity (EOQ), reveals that carrying inventory or ordering frequency follows a relation of tradeoff. For probabilistic demand, the tradeoff surface among annual order, expected inventory and shortage are useful because they quantify what the firm mu...
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| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2013-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2013/619898 |
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| author | Longsheng Cheng Ching-Shih Tsou Ming-Chang Lee Li-Hua Huang Dingwei Song Wei-Shan Teng |
| author_facet | Longsheng Cheng Ching-Shih Tsou Ming-Chang Lee Li-Hua Huang Dingwei Song Wei-Shan Teng |
| author_sort | Longsheng Cheng |
| collection | DOAJ |
| description | Deterministic inventory model, the economic order quantity (EOQ), reveals that carrying inventory or ordering frequency follows a relation of tradeoff. For probabilistic demand, the tradeoff surface among annual order, expected inventory and shortage are useful because they quantify what the firm must pay in terms of ordering workload and inventory investment to meet the customer service desired. Based on a triobjective inventory model, this paper employs the successive approximation to obtain efficient control policies outlining tradeoffs among conflicting objectives. The nondominated solutions obtained by successive approximation are further used to plot a 3D scatterplot for exploring the relationships between objectives. Visualization of the tradeoffs displayed by the scatterplots justifies the computation effort done in the experiment, although several iterations needed to reach a nondominated solution make the solution procedure lengthy and tedious. Information elicited from the inverse relationships may help managers make deliberate inventory decisions. For the future work, developing an efficient and effective solution procedure for tradeoff analysis in multiobjective inventory management seems imperative. |
| format | Article |
| id | doaj-art-d553ac6b19f3487582d2636d8c758540 |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2013-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-d553ac6b19f3487582d2636d8c7585402025-02-03T05:51:06ZengWileyJournal of Applied Mathematics1110-757X1687-00422013-01-01201310.1155/2013/619898619898Tradeoff Analysis for Optimal Multiobjective Inventory ModelLongsheng Cheng0Ching-Shih Tsou1Ming-Chang Lee2Li-Hua Huang3Dingwei Song4Wei-Shan Teng5School of Economics and Management, Nanjing University of Science and Technology, Nanjing, Jiangsu 210094, ChinaInstitute of Information and Decision Sciences, National Taipei College of Business, Taipei 10051, TaiwanDepartment of Information Management, Yu Da University, Miaoli 36143, TaiwanDepartment of Accounting Information, National Taipei College of Business, Taipei 10051, TaiwanSchool of Management, Jiangsu University, Zhengjiang, Jiangsu 212013, ChinaInstitute of Information and Decision Sciences, National Taipei College of Business, Taipei 10051, TaiwanDeterministic inventory model, the economic order quantity (EOQ), reveals that carrying inventory or ordering frequency follows a relation of tradeoff. For probabilistic demand, the tradeoff surface among annual order, expected inventory and shortage are useful because they quantify what the firm must pay in terms of ordering workload and inventory investment to meet the customer service desired. Based on a triobjective inventory model, this paper employs the successive approximation to obtain efficient control policies outlining tradeoffs among conflicting objectives. The nondominated solutions obtained by successive approximation are further used to plot a 3D scatterplot for exploring the relationships between objectives. Visualization of the tradeoffs displayed by the scatterplots justifies the computation effort done in the experiment, although several iterations needed to reach a nondominated solution make the solution procedure lengthy and tedious. Information elicited from the inverse relationships may help managers make deliberate inventory decisions. For the future work, developing an efficient and effective solution procedure for tradeoff analysis in multiobjective inventory management seems imperative.http://dx.doi.org/10.1155/2013/619898 |
| spellingShingle | Longsheng Cheng Ching-Shih Tsou Ming-Chang Lee Li-Hua Huang Dingwei Song Wei-Shan Teng Tradeoff Analysis for Optimal Multiobjective Inventory Model Journal of Applied Mathematics |
| title | Tradeoff Analysis for Optimal Multiobjective Inventory Model |
| title_full | Tradeoff Analysis for Optimal Multiobjective Inventory Model |
| title_fullStr | Tradeoff Analysis for Optimal Multiobjective Inventory Model |
| title_full_unstemmed | Tradeoff Analysis for Optimal Multiobjective Inventory Model |
| title_short | Tradeoff Analysis for Optimal Multiobjective Inventory Model |
| title_sort | tradeoff analysis for optimal multiobjective inventory model |
| url | http://dx.doi.org/10.1155/2013/619898 |
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