Archive | 2019
A Deterministic Multi-item Inventory Model with Limited Warehouse Capacity
Abstract
The multi-item inventory problems have been reported in the literature. Within the category, the resource can be constrained or unconstrained, and the demand for each item can be independent, dependent or interdependent, and the demand rate can be deterministic or scholastic. In this paper, we focus on deterministic multi-item inventory problem with capacity constraint, while the demand rate is independent for each item. For this NP-hard problem, we develop an iterative heuristic algorithm with local search procedure to determine the staggering time and order interval for each item. We show that the procedure of proposed heuristic approach is robust by experimental results. Finally we compare the multi-item inventory solution solved by Lagrangian, Chern et al., Power-of-two and the proposed heuristic approach in this paper and find the performance of proposed algorithm gets conspicuously better than the other three methods’.