Simulation-based optimization on three-echelon network stochastic inventory control policies
Dingwei Wang · Control theory & applications · 2009
The problem of how to set the (r,Q) inventory control policies for a three-echelon network stochastic inven-tory system is studied. Because the customer arrival time is a Possion process, and all of the customer demand, the customer purchasing behavior and the lead time are stochastic and the production capacity is limited in the inventory system, it is difficult for the analytical method to describe various complex and stochastic factors and develop an effective inventory control policy. A mathematical model is built for minimizing the total cost. Next, the simulation-based optimization method is used to solve the problem by combining the simulation method together with the particle-swarm optimization algorithm. The simulation results demonstrate the feasibility and the effectiveness of the mathematical model and the simulation-based particle-swarm optimization method by comparisons, and show the applicability of the simulation-based optimization method in the supply chain management.