A heuristic approach is developed for supply chain planning modeled as multi-item multi-level capacitated lot sizing problems. The heuristic combines Lagrangian relaxation (LR) with local search. Different from existing LR approaches that relax capacity constraints and/or inventory balance constraints, our approach only relaxes the technical constraints that each 0-1 setup variable must take va...

Unlike previous research, this study develops an integrated inventory model for controllable lead time with defective items, errors in inspection, and variable considering sustainability. The research investigates the effect of controlling capital investment setup cost. We assume that buyer receives a lot size may contain some items known probability. buyer’s inspector conducts 100% quality ins...

The success of “infinite-inventory” retailers such as Amazon.com and Netflix has been largely attributed to a “long tail” phenomenon. Although the majority of their inventory is not in high demand, these niche products, unavailable at limited-inventory competitors, generate a significant fraction of total revenue in aggregate. In addition, tail product availability can boost head sales by offer...

this paper presents a new meta-heuristic solution to find the efficient frontier using the mean-variance approach. portfolio optimization problem is a quadratic programming model and, changes to np-hard if the number of assets and constraints has increased, and it cannot be solved using common mathematical methods in a reasonable time. therefore, a heuristic or meta-heuristic algorithm should b...

We consider a family of N items that are produced in, or obtained from, the same production facility. Demands are deterministic for each item and each period within a given horizon of T periods. If in a given period an order is placed, setup costs are incurred. The aggregate order size is constrained by a capacity limit. The objective is to find a lot-sizing strategy that satisfies the demands ...

Inventory control is one of the most important issues in supply chain management. In this paper, a three-echelon production, distribution, inventory system composed of one producer, a set of wholesalers and retailers is considered. Costumers' demands can be approximated by a normal distribution and the inventory policy is a kind of continuous review (R, Q). In this paper, a model based on stand...

The correlated demand caused by cross-selling, Zhang et al (2011) proposed a two-item EOQ model, where the unmet demand for the major item can be partially backordered with lost sales that will reduce demand for the minor item. They developed an enumeration algorithm that can deal with only one minor associated item. Zhang et al (2011) proposed the partial backordering EOQ with correlated deman...

A novel clustering algorithm is proposed and applied to the multi-item replenishment processing. This new algorithm has two distinguished features: non-binary hierarchical tree and the feature of overlapping clustering. A non-binary hierarchical tree is much smaller than the binary-trees constructed by most traditional algorithms and, therefore, it clearly highlights meaningful clusters which s...