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Integrated inventory and production policy for manufacturing with perishable raw materials

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Abstract

This research investigates an integrated inventory and production scheduling problem (IIPSP) in a manufacturer that deals with the perishable goods. The objective is to find an optimal schedule to minimize the sum of inventory cost and production cost. Both single-plant problem and multi-plant problem are investigated in this paper. For the single-plant problem, we prove that it is optimal to arrange the processing of raw materials in descending order of the value of the product of consumption rate and unit inventory cost. For the more complex multi-plant problem, we first prove that it is NP-hard, and then, we propose a hybrid intelligent algorithm to solve it. The experiments show that the proposed algorithm is superior to several other algorithms in both effectiveness and efficiency.

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Acknowledgments

This work is supported by the National Natural Science Foundation of China (Nos. 71922009, 71871080, 72071056, 71690235, 71501058, 71601060), and Innovative Research Groups of the National Natural Science Foundation of China (71521001), Anhui Province Natural Science Foundation (No. 1908085MG223, No. 2008085QG341), Base of Introducing Talents of Discipline to Universities for Optimization and Decision-making in the Manufacturing Process of Complex Product (111 projects), the Project of Key Research Institute of Humanities and Social Science in University of Anhui Province, Open Research Fund Program of Key Laboratory of Process Optimization and Intelligent Decision-making(Hefei University of Technology), Ministry of Education. Prof. Panos M. Pardalos was supported by a Humboldt Research Award (Germany).

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Authors and Affiliations

  1. School of Management, Hefei University of Technology, Hefei, Anhui, People’s Republic of China

    Chaoming Hu, Jun Pei & Xinbao Liu

  2. Key Laboratory of Process Optimization and Intelligent Decision-making of the Ministry of Education, Hefei, Anhui, People’s Republic of China

    Chaoming Hu, Jun Pei & Xinbao Liu

  3. School of Economics and Management, Anhui Normal University, Wuhu, 241000, People’s Republic of China

    Min Kong

  4. Center for Applied Optimization, Department of Industrial and Systems Engineering, University of Florida, Gainesville, FL, USA

    Panos M. Pardalos

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  1. Chaoming Hu
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  2. Min Kong
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  3. Jun Pei
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  4. Xinbao Liu
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  5. Panos M. Pardalos
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Correspondence to Min Kong or Jun Pei.

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Hu, C., Kong, M., Pei, J. et al. Integrated inventory and production policy for manufacturing with perishable raw materials. Ann Math Artif Intell 89, 777–797 (2021). https://doi.org/10.1007/s10472-021-09739-1

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