Track: Inventory Management
Abstract
In this paper, an alternative approach is proposed to deal with the inventory positioning problem in a supply chain network. In particular, the problem is modelled as a mixed integer programming model. In this model, the locations and amount of stock at each location are decision variables, while the total holding inventory cost is the objective function. The optimal solution for such a model can be obtained by using a commercial. The applicability of the proposed method, especially the mathematical model, is validated by a few numerical experiments. The results indicates that our approach is suitable for various types of supply chain networks and the optimal solutions for these networks are easily obtained via a commercial solver.