Abstract ▼ AI-Helper

The ability to determine the optimal frequencies and offsets for independent and unrestricted ordering cycles for multiple items can be very valuable for managing storage capacity constrained facilities in a supply chain. The complexity of this problem has resulted in researchers focusing on more tr...

The ability to determine the optimal frequencies and offsets for independent and unrestricted ordering cycles for multiple items can be very valuable for managing storage capacity constrained facilities in a supply chain. The complexity of this problem has resulted in researchers focusing on more tractable surrogate problems that are special cases of the base problem. Murthy et al. (European Journal of Operation Research 2003) developed insights leading to solution of the original problem and present a heuristic for offsetting independent and unrestricted ordering cycles for items to minimize their joint storage requirements. However, their study cannot find optimal solution due to the Greedy Heuristic solution procedure. In this paper, we present a complete procedure to find the optimal solution for the model with a integer programming optimization approach and genetic algorithm. Numerical examples are included to compare each model with that of Murthy et at. Research of this type may prove useful in solving the more general problem of selecting order policies to minimize combined holding, ordering, and storage costs.