A multiproduct economic order quantity model with simulated annealing application

What is it about?

This paper describes a multiproduct economic order quantity model with simulated annealing application showing that the model is efficient for finding optimal solutions even when confronted with mathematical complexities such as the allowance of backorders and incremental discounts.

Featured Image

Why is it important?

A basic integer non-linear model with binary variables is presented, and its flexible structure allows for all five models to be utilised with minor modifications for adaptation to individual situations. The multiproduct model takes into consideration the work of Chopra and Meindl (2012), who studied two types of product aggregations: full and adaptive. To find optimal or near-optimal solutions for the multiproduct case, the authors propose a simulated annealing metaheuristic application. Numerical examples are presented to improve the comprehension of each model, and the authors also present the efficiency of the simulated annealing algorithm through an example that aggregates 50 products, each one with different discount schemes and some allowing backorders.

Perspectives