Metaheuristic-Based Model Selection Framework for EOQ and Inventory Policies Using Machine Learning and Multi-Objective Optimization

The challenge of inventory optimization is extremely important for all manufacturing companies, as inventory costs significantly impact operational efficiency. The Economic Order Quantity (EOQ) model was developed to address this issue, and it is widely used to formulate it, as it generally considers only a few parameters and a single objective. This research develops a simulation-based framework that integrates multiple EOQ-based inventory policies and performs multi-objective optimization using the NSGA-II algorithm. The framework optimizes total cost, fill rate, and average inventory level and finally generates a Pareto front as a result. To reduce computational costs, we use a machine learning-based random forest model, which replaces a significant amount of the simulations with predictions. This reduces the simulation cost to approximately one-sixth of the original, while the quality of the simulation changes only minimally, as the hypervolume value decreases by only 4%. The proposed framework can be used as an effective decision-support tool for inventory optimization under stochastic demand conditions.