Abstract

In this paper, a mixed integer linear programming model is proposed in order to optimize review periods and (s, S) inventory levels of floor stock items (FSIs) in a paint production facility to decrease the number pauses in the production process. In the model, power-of-two policy for periodic review scenario is considered. The optimum review periods are determined for multi-item types satisfying pre-defined cycle service level (CSL) under a capacity constraint. It is significant to determine the optimum review periods and safety stock levels of FSIs to be hold in the floor stock storage areas (FSSAs) so that the number of stops will be minimized in the production process. We model the problem as multi-item, single-echelon inventory system using periodic review (s, S) policy. In the facility, raw materials are hold in nine inside inventory locations which are supplied from the main warehouse whose capacity is infinite. The objective function is considered as minimization of total number of reviews completed in a year, i.e., the total number of transportations completed from the main warehouse. The results indicate that there is a positive correlation between the review periods and the difference between the S and s values.