Decomposition Approach for a Two-Echelon Inventory Management System

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Decomposition Approach for a Two-Echelon Inventory Management System. / Yuskov, A. D.; Kulachenko, I. N.; Melnikov, A. A. et al.

In: Journal of Applied and Industrial Mathematics, Vol. 18, No. 4, 23, 12.2024, p. 918-934.

Research output: Contribution to journal › Article › peer-review

BibTeX

@article{884adead54d2446a869f51640b5cfdf2,

title = "Decomposition Approach for a Two-Echelon Inventory Management System",

abstract = "Warehouses of the first echelon in a two-echelon system are designed to satisfy customerorders. In the second echelon, we have a central warehouse for restocking the first-echelonwarehouses. Customer orders can be partially satisfied, but the total fraction of completed ordersshould not be less than the specified threshold. We need to minimize the total cost of storing theitems in all warehouses. We use a deterministic simulation to calculate the order satisfaction ratioand the storage cost during the planning period. The simulation depends on inventorymanagement policies at each warehouse for each type of items. We develop a decompositionmethod for solving the problem. It is based on solution of subproblems for each type of items.Also, we propose some approaches to exact solution of the problem. The results of numericalexperiments with instances with 100 warehouses and 1000 types of items are presented. Oninstances with known exact solutions, we have the optimum in two cases, while in the other casesthe deviation from the optimal values is at most 1.9%.",

keywords = "gray-box optimization, knapsack problem, local search",

author = "Yuskov, {A. D.} and Kulachenko, {I. N.} and Melnikov, {A. A.} and Kochetov, {Yu A.}",

note = "This research was carried out within the framework of the state assignment for the Sobolev Institute of Mathematics of the Siberian Branch of the Russian Academy of Sciences, project no. FWNF–2022–0019.",

year = "2024",

month = dec,

doi = "10.1134/S1990478924040239",

language = "English",

volume = "18",

pages = "918--934",

journal = "Journal of Applied and Industrial Mathematics",

issn = "1990-4789",

publisher = "Maik Nauka-Interperiodica Publishing",

number = "4",

}

RIS

TY - JOUR

T1 - Decomposition Approach for a Two-Echelon Inventory Management System

AU - Yuskov, A. D.

AU - Kulachenko, I. N.

AU - Melnikov, A. A.

AU - Kochetov, Yu A.

N1 - This research was carried out within the framework of the state assignment for the Sobolev Institute of Mathematics of the Siberian Branch of the Russian Academy of Sciences, project no. FWNF–2022–0019.

PY - 2024/12

Y1 - 2024/12

N2 - Warehouses of the first echelon in a two-echelon system are designed to satisfy customerorders. In the second echelon, we have a central warehouse for restocking the first-echelonwarehouses. Customer orders can be partially satisfied, but the total fraction of completed ordersshould not be less than the specified threshold. We need to minimize the total cost of storing theitems in all warehouses. We use a deterministic simulation to calculate the order satisfaction ratioand the storage cost during the planning period. The simulation depends on inventorymanagement policies at each warehouse for each type of items. We develop a decompositionmethod for solving the problem. It is based on solution of subproblems for each type of items.Also, we propose some approaches to exact solution of the problem. The results of numericalexperiments with instances with 100 warehouses and 1000 types of items are presented. Oninstances with known exact solutions, we have the optimum in two cases, while in the other casesthe deviation from the optimal values is at most 1.9%.

AB - Warehouses of the first echelon in a two-echelon system are designed to satisfy customerorders. In the second echelon, we have a central warehouse for restocking the first-echelonwarehouses. Customer orders can be partially satisfied, but the total fraction of completed ordersshould not be less than the specified threshold. We need to minimize the total cost of storing theitems in all warehouses. We use a deterministic simulation to calculate the order satisfaction ratioand the storage cost during the planning period. The simulation depends on inventorymanagement policies at each warehouse for each type of items. We develop a decompositionmethod for solving the problem. It is based on solution of subproblems for each type of items.Also, we propose some approaches to exact solution of the problem. The results of numericalexperiments with instances with 100 warehouses and 1000 types of items are presented. Oninstances with known exact solutions, we have the optimum in two cases, while in the other casesthe deviation from the optimal values is at most 1.9%.

KW - gray-box optimization

KW - knapsack problem

KW - local search

UR - https://www.scopus.com/pages/publications/105010513339

UR - https://www.elibrary.ru/item.asp?id=82621672

UR - https://www.elibrary.ru/item.asp?id=82607000

UR - https://www.mendeley.com/catalogue/0ca078ad-fa07-3e23-a630-788e684b3f5a/

U2 - 10.1134/S1990478924040239

DO - 10.1134/S1990478924040239

M3 - Article

VL - 18

SP - 918

EP - 934

JO - Journal of Applied and Industrial Mathematics

JF - Journal of Applied and Industrial Mathematics

SN - 1990-4789

IS - 4

M1 - 23

ER -

ID: 68667893