2015
DOI: 10.1057/jos.2015.5
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Simulation-based optimization for a capacitated multi-echelon production-inventory system

Abstract: One of the most important aspects affecting the performance of a supply chain is the management of inventories. Managing inventory in complex supply chains is typically difficult, and may have a significant impact on the customer service level and system-wide costs. The main challenge of inventory management is that almost every inventory problem involves multiple and conflicting objectives that need to be optimized simultaneously. In this paper, we present an efficient way using simulation-based optimization … Show more

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Cited by 40 publications
(18 citation statements)
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“…Similarly, [311] compare different algorithms for near-optimal solutions after having encountered difficulties using an exact approach. Meta-heuristics allow to explore the search space more efficiently and effectively, especially if they are tailored to the individual problem [119]. Different meta-heuristic algorithms, such as Evolutionary Computation, Tabu Search, Particle Swarm Optimization (PSO) or Simulated Annealing (SA) have been successfully applied to various logistics optimization problems [253].…”
Section: Meta-heuristicsmentioning
confidence: 99%
“…Similarly, [311] compare different algorithms for near-optimal solutions after having encountered difficulties using an exact approach. Meta-heuristics allow to explore the search space more efficiently and effectively, especially if they are tailored to the individual problem [119]. Different meta-heuristic algorithms, such as Evolutionary Computation, Tabu Search, Particle Swarm Optimization (PSO) or Simulated Annealing (SA) have been successfully applied to various logistics optimization problems [253].…”
Section: Meta-heuristicsmentioning
confidence: 99%
“…Other papers gained the advantage of evaluating the optimal solutions in terms of the other measures, such as KPIs in sourcing by Ding et al [116], and the qualitative measures, such as customer satisfaction in the design of inventory systems by Chu et al [117]. In one recent relevant study, M. Gueller et al [118] applied a multi-objective particle swarm optimization algorithm for the optimization of inventory decision variables (reorder point and order quantity), to be evaluated in an object-oriented simulator in terms of different performance measures such as customer service level and demand fulfillment rate, among others. In another related paper, Wang et al [111] employed simulation in a transportation study to estimate the cost and reliability of solutions in a routing problem.…”
Section: Simulation-based Optimizationmentioning
confidence: 99%
“…In another possible approach, the given social and environmental restrictions can be fulfilled in the simulation part of S-O frameworks, while the cost criterion can be optimized through an external optimizer. Other studies have optimized the customer service level in addition to the variable costs [115,117,118,126,130]. In a simulation optimization framework developed by [143], the fitness function is calculated using a lexicographic structure where the individual optimum solutions are ranked based on total cost, customer service level and the average work in progress material.…”
Section: Studies On Sustainabilitymentioning
confidence: 99%
“…Compared with the results of non-dominated sequencing genetic algorithm, it shows that the proposed method can effectively solve the optimal replenishment problem in supply chain environment. Güller et al [16] studied a multi-echelon production-inventory system under a stochastic environment and used simulation-based optimization approach to determine the optimal inventory control parameters. He et al [17] proposed a novel simulation-based heuristic method to solving the modeling and optimization problem of multi-echelon contain in supply chain network, where the objective is subject to the minimization of the total supply chain service cost.…”
Section: Introductionmentioning
confidence: 99%