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An efficient optimization procedure for location-inventory problems with (S-1, S) policy and retrial demands

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  • Wang, Fong-Fan

Abstract

In this research, we used an easy and efficient computation procedure for deriving performance measures of (S-1, S) inventory problems with M/M/c replenishment under a retrial demand scenario. We prove some properties of the studied problem and also under back-ordered demands for comparison. We apply our method to a capacity design problem and a location-inventory design problem. For both problems, we used our method combined with direct search and genetic algorithm (GA) for optimization and compare with matrix geometric method (MGM) based evaluation and other optimization methods, including enumeration and FICO Xpress Mosel. Numerical examples show our method is about ten times more efficient than MGM-based evaluation and outperforms the other optimization methods. To find if the solution can be improved, we compare GA with other meta-heuristics, including simulated annealing, particle swarm optimization, and ant colony optimization. Finally, a sensitivity study for the location-inventory design problem is investigated.

Suggested Citation

  • Wang, Fong-Fan, 2023. "An efficient optimization procedure for location-inventory problems with (S-1, S) policy and retrial demands," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 206(C), pages 664-688.
    • Handle: RePEc:eee:matcom:v:206:y:2023:i:c:p:664-688
    DOI: 10.1016/j.matcom.2022.12.010
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    References listed on IDEAS

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    1. Ebrahim Teimoury & Mohammad Modarres Yazdi & Iman Ghaleh Khondabi & Mahdi Fathi, 2011. "Two-Facility Location Problem with Infinite Retrial Queue," International Journal of Strategic Decision Sciences (IJSDS), IGI Global, vol. 2(3), pages 38-54, July.
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    5. J. Artalejo & A. Krishnamoorthy & M. Lopez-Herrero, 2006. "Numerical analysis of(s, S) inventory systems with repeated attempts," Annals of Operations Research, Springer, vol. 141(1), pages 67-83, January.
    6. Fathi, Mahdi & Khakifirooz, Marzieh & Diabat, Ali & Chen, Huangen, 2021. "An integrated queuing-stochastic optimization hybrid Genetic Algorithm for a location-inventory supply chain network," International Journal of Production Economics, Elsevier, vol. 237(C).
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