Optimization of a multi-item inventory system with probabilistic resource constraints

Multi-item inventory systems in stochastic demands were studied to reduce operation costs of large scale distribution centers and effectively use resources. This paper suggests an application of a probabilistic constraint in the context of multi-item (Q,R) ordering policy based on previous research on single period multi-item inventory systems with linear constraints, which significantly improves warehouse and capital management. An effective heuristic algorithm was developed, which provides enterprises with applicable solution in practical inventory management. The results of the polynomial algorithm shpw that over 30% of inventory costs is saved compared with conventional methods without further resource consumption.