Article ID: | iaor20172924 |
Volume: | 11 |
Issue: | 6 |
Start Page Number: | 1137 |
End Page Number: | 1154 |
Publication Date: | Aug 2017 |
Journal: | Optimization Letters |
Authors: | angalovi Mirjana, Đorđevi Lena, Anti Sobodan, Lisec Andrej |
Keywords: | inventory: order policies, combinatorial optimization, heuristics, programming: multiple criteria, management, programming: dynamic, simulation, heuristics: local search |
This paper considers the well‐known static time‐continuous multiproduct economic order quantity (EOQ) based inventory management problem with the storage space constraints. This problem is modelled as a combinatorial optimization problem in the corresponding dynamic discrete time system control process. In order to solve this problem approximately, we developed two heuristics: a special heuristic based on a local search technique and a metaheuristic procedure based on the variable neighbourhood search principle. The efficiency of two heuristics is preliminary examined and compared on several randomly generated instances with the same number of products.