WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 22, 2025
Inventory Optimization with Several Resources
Authors: , ,
Abstract: Inventory optimization is extended with additional constraints that affect production efficiency using estimated inventory. The extension of the inventory problem is in a special formal form with an additional optimization problem. The latter is aimed at minimizing production costs while using optimal volumes of material stocks. Such integration of inventory and production is formalized through a bi-level optimization problem. The case of simultaneous delivery of different types of goods is strongly related to the production process of final goods. A bi-level optimization problem is numerically defined and solved. Delivery costs are minimized for a given production plan. The bi-level problem is applied to prepare feed with the required nutrient content while minimizing the inventory costs of supplying the required raw materials. Empirical results give advantages for the obtained solution of the bi-level optimization problem.
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Keywords: inventory modeling, inventory management, production optimization, business management, optimal nutrition content, bi-level optimization
Pages: 151-156
DOI: 10.37394/23207.2025.22.14