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Inventory replenishment with interdependent ordering costs: An evolutionary algorithm solution

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  • Olsen, Anne L.

Abstract

Interdependence of minor ordering costs occurs in joint replenishment of inventory when the cost of placing an item in an order depends on which other items are also in the order. In this paper, we propose an evolutionary algorithm (EA) for joint replenishment of inventory which allows for the interdependence of minor ordering costs. Since solutions to the joint replenishment problem (JRP) can be represented by integer decision variables, this makes the JRP a good candidate for an EA. The results of testing 2430 randomly generated problems show that our algorithm provides close to optimal results for some problems.

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  • Olsen, Anne L., 2008. "Inventory replenishment with interdependent ordering costs: An evolutionary algorithm solution," International Journal of Production Economics, Elsevier, vol. 113(1), pages 359-369, May.
    • Handle: RePEc:eee:proeco:v:113:y:2008:i:1:p:359-369
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    References listed on IDEAS

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    1. Chakravarty, Amiya K. & Goyal, Suresh K., 1986. "Multi-item inventory grouping with dependent set-up cost and group overhead cost," Engineering Costs and Production Economics, Elsevier, vol. 10(1), pages 13-23, March.
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    1. Shiyu Liu & Ou Liu & Xiaoming Jiang, 2023. "An Efficient Algorithm for the Joint Replenishment Problem with Quantity Discounts, Minimum Order Quantity and Transport Capacity Constraints," Mathematics, MDPI, vol. 11(4), pages 1-18, February.
    2. Seyed Hamid Reza Pasandideh & Seyed Taghi Akhavan Niaki & Reza Abdollahi, 2020. "Modeling and solving a bi-objective joint replenishment-location problem under incremental discount: MOHSA and NSGA-II," Operational Research, Springer, vol. 20(4), pages 2365-2396, December.
    3. Tsai, Chieh-Yuan & Tsai, Chi-Yang & Huang, Po-Wen, 2009. "An association clustering algorithm for can-order policies in the joint replenishment problem," International Journal of Production Economics, Elsevier, vol. 117(1), pages 30-41, January.
    4. Baller, Annelieke C. & Dabia, Said & Dullaert, Wout E.H. & Vigo, Daniele, 2019. "The Dynamic-Demand Joint Replenishment Problem with Approximated Transportation Costs," European Journal of Operational Research, Elsevier, vol. 276(3), pages 1013-1033.
    5. Ongkunaruk, P. & Wahab, M.I.M. & Chen, Y., 2016. "A genetic algorithm for a joint replenishment problem with resource and shipment constraints and defective items," International Journal of Production Economics, Elsevier, vol. 175(C), pages 142-152.
    6. Wang, Lin & He, Jing & Wu, Desheng & Zeng, Yu-Rong, 2012. "A novel differential evolution algorithm for joint replenishment problem under interdependence and its application," International Journal of Production Economics, Elsevier, vol. 135(1), pages 190-198.

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