Modeling of Inventory Systems in Soft Computing Technologies

This study assesses the benefit of integrating inventory (stock) decisions; the benefit of integrating distribution center incorporates "The rented warehouse (RW) is assumed to have superior preservation facilities, which results in higher inventory costs, including holding and deterioration costs, than the owned warehouse (OW). Consequently, a two-warehouse inventory model for deteriorating items is devised under this assumption. Both demand and holding costs (HC) are considered as variable factors. "Deficiencies are permitted in the OW completely accumulated at the next replenishment cycle". Transportation costs are assumed to be negligible, and goods are transported following a bulk release pattern. The supply chain consists of four tiers: Production, Distribution, Transportation, and Retail, all of which bear costs. A coordinated approach among these tiers is essential to ensure precise timing, minimizing inventory and costs while maximizing profits. This study introduces a method using a genetic algorithm to optimize inventory in supply chain management. Specifically, it focuses on identifying the optimal excess stock and shortage levels needed for inventory optimization, with the goal of minimizing the total supply chain cost".