A Hybrid Metaheuristic for the Omnichannel Multiproduct Inventory Replenishment Problem

Abstract

In the current paradigm for the retail industry, which is experiencing a rapid evolution, especially in textile companies, the generic problem of product allocation in a distribution and supply chain consisting of one main warehouse and several locations, belonging to different sales channels, is a challenge. The omnichannel replenishment process focuses on dynamically optimizing a shop or intermediate warehouse inventory for a wide range of products based on a forecast of sales, in order to fulfill the demand of all of the channels considered. In this context, the aims of this work were (a) to optimize inventory replenishment for multiple channels and products that are not perishable but devalue over time, and (b) to implement a methodology that combines the benefits of the Particle Swarm Optimization metaheuristic and Simulated Annealing. This study was carried out for different sales periods, channels and product configurations by performing a sensitivity analysis between the way new solutions are updated and the degree of intensification used in local search.

The Future of E-Commerce: Overview and Prospects of Multichannel and Omnichannel Retail

“…In particular, and even though some contributions were related to technology through the creation, use, assessment, and application of mathematical models and algorithms (e.g., [23][24][25]), none of the final accepted research studies had a technology focus. One of the studies [26] offered a nice starting point to set the tone of the special issue by exploring the previous literature on multichannel and omnichannel retailing, three of them had a mostly strategic focus (e.g., [27] on promotional strategy, [23] on digital marketing strategy, [28] on location selection for physical stores), four studies took a customer-centric view ( [5] on channel integration from a consumer perspective, [29] on emotional responses to omnichannel systems, [30] on green communication and channel switching, and [31] on perceived quality of online and offline servicescapes), two studies had a retailer-centric approach ( [24] on inventory replenishment in the fashion industry and [25] on optimization of last mile delivery). Finally, while the last contribution [32] leaned toward the retailcentric approach, we considered it to be a good representative of the mixed and integrative views mentioned in the previous section, since the authors explicitly stated related research objectives that combined both views.…”

“…Effective supply chain management is at the heart of optimization in omnichannel retail. In A Hybrid Metaheuristic for the Omnichannel Multiproduct Inventory Replenishment Problem, Lorenzo-Espejo et al [24] study the optimal allocation of products in a typical supply chain configuration of one main warehouse and several locations. The problem they address is therefore how to dynamically optimize a shop or intermediate warehouse inventory for a wide range of products based on a forecast of sales, while fulfilling the demand of all the channels; this is a problem with nefarious consequences in sectors where brands have to ensure high product availability but prevent overstocking, such as the fashion industry.…”

A Novel System Based on Selection Strategy and Ensemble Mode for Non-Ferrous Metal Futures Market Management

“…In other similar fields, the XGBoost-NSGA-II-SHAP approach is established by Deng et al [42] to address hyperparameters and overfitting puzzles and the conclusion is drawn that the developed model can effectively predict the stock crash risk according to the financial indicators. Lorenzo-Espejo et al [43] combine PSO with simulated annealing for the optimization of the multiproduct omnichannel replenishment trouble. Prediction and visualization of the System of Management of Agreements and Transfer Contracts are realized by Andrade et al [44] using machine learning, which can help evaluate new and ongoing project profiles.…”

Green Consumers’ Responses to Integrated Digital Communication in the Context of Multichannel Retail

“…In the retail business, multichannel retailing systems have been present for a very long time [27]. Some examples of multichannel retailing systems include the combination of mail order and omnichannel sales [27][28][29][30]. In multichannel management, only channels inside the retailer's sphere may be directly controlled or managed, thus representing this definition's premise.…”