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Integer Programming Model for Inventory Optimization for a Multi Echelon System

Bassem H. Roushdy
Basic and Applied Science, Arab Academy for Science and Technology, Cairo, Egypt

Abstract—The interest in supply chain management and its optimization as complex systems is rapidly growing. In this research, the interaction among different entities in the supply chain is considered where a repeated process of orders and production occur. A supply chain network consisting of multi-echelon manufacturing center and one demand center is considered. A mixed integer programming model is developed to determine production and inventory decisions across different entities supply chain. The objective here is to determine warehouse allocation places in the supply chain to have minimum inventory cost of the system.

Index Terms—supply chains, integer programming, inventory coordination & optimization

Cite: Bassem H. Roushdy, Integer Programming Model for Inventory Optimization for a Multi Echelon System," Journal of Advanced Management Science, Vol. 4, No. 1, pp. 47-52, January 2016. doi: 10.12720/joams.4.1.47-52
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