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Integrated Forecast and Optimization for Retailer Allocation in a Two-Echelon Inventory System

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18th International Conference on Soft Computing Models in Industrial and Environmental Applications (SOCO 2023) (SOCO 2023)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 749))

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Abstract

The paper reports on a real-world application case of integrated data forecasting and process optimization for a tactical-level study in the context of the final stage of two-echelon logistics support for a large retail chain. The allocation of final stores to distribution centers had to be redefined in view of the expected increase in sales volume during the Christmas season. For this purpose, time series of past sales were projected up to the period of interest as a basis for the reoptimization of the store allocation. The latter problem was identified as an extended generalized assignment problem, which was solved using a Lagrangian matheuristic. Computational results are presented showing a comparison of different forecasting algorithms on the actual data and the advantages of using a matheuristic for optimization in this industrial setting, even when compared to results obtained by proprietary third-party solutions.

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Author information

Authors and Affiliations

  1. Department of Computer Science, University of Bologna, 47521, Cesena, Italy

    Vittorio Maniezzo & Tingting Zhou

  2. Department of Economics and Management, University of Science and Technology Beijing, Beijing, China

    Tingting Zhou

Authors
  1. Vittorio Maniezzo
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  2. Tingting Zhou
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Corresponding author

Correspondence to Vittorio Maniezzo .

Editor information

Editors and Affiliations

  1. Faculty of Engineering, University of Deusto, Bilbao, Spain

    Pablo García Bringas

  2. School of Industrial, Computer, University of Leon, León, Spain

    Hilde Pérez García

  3. Department of Mechanical Engineering, University of La Rioja, Logroño, Spain

    Francisco Javier Martínez de Pisón

  4. Data Science and Big Data Lab, Pablo de Olavide University, Seville, Spain

    Francisco Martínez Álvarez

  5. Data Science and Big Data Lab, Pablo de Olavide University, Seville, Spain

    Alicia Troncoso Lora

  6. Applied Computational Intelligence, University of Burgos, Burgos, Spain

    Álvaro Herrero

  7. Department of Industrial Engineering, University of A Coruña, A Coruña, Spain

    José Luis Calvo Rolle

  8. Department of Industrial Engineering, University of A Coruña, A Coruña, Spain

    Héctor Quintián

  9. Faculty of Science, University of Salamanca, Salamanca, Spain

    Emilio Corchado

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Maniezzo, V., Zhou, T. (2023). Integrated Forecast and Optimization for Retailer Allocation in a Two-Echelon Inventory System. In: García Bringas, P., et al. 18th International Conference on Soft Computing Models in Industrial and Environmental Applications (SOCO 2023). SOCO 2023. Lecture Notes in Networks and Systems, vol 749. Springer, Cham. https://doi.org/10.1007/978-3-031-42529-5_27

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