Search results for "safety stock"
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Integration of lot sizing and safety strategy placement using interactive multiobjective optimization
2022
We address challenges of unpredicted demand and propose a multiobjective optimization model to integrate a lot sizing problem with safety strategy placement and optimize conflicting objectives simultaneously. The novel model is devoted to a single-item multi-period problem in periodic review policy. As a safety strategy, we use the traditional safety stock concept and a novel concept of safety order time, which uses a time period to determine the additional stock to handle demand uncertainty. The proposed model has four objective functions: purchasing and ordering cost, holding cost, cycle service level and inventory turnover. We bridge the gap between theory and a real industrial problem a…
Interactive Multiobjective Optimization in Lot Sizing with Safety Stock and Safety Lead Time
2021
In this paper, we integrate a lot sizing problem with the problem of determining optimal values of safety stock and safety lead time. We propose a probability of product availability formula to assess the quality of safety lead time and a multiobjective optimization model as an integrated lot sizing problem. In the proposed model, we optimize six objectives simultaneously: minimizing purchasing cost, ordering cost, holding cost and, at the same time, maximizing cycle service level, probability of product availability and inventory turnover. To present the applicability of the proposed model, we consider a real case study with data from a manufacturing company and apply the interactive NAUTI…