OPTIMIZATION OF INVENTORY IN SUPPLY CHAIN

ABSTRACT

Nowadays, a key concern for all the industries is to reduce the inventory and inventory driven costs and maintain them at an optimum level in the supply chain system. The dynamic nature of the excess stock level and shortage level in the supply chain system poses a challenge for efficient inventory management. The complexity of the problem increases with the inclusion of multiple products from multiple factories and involvement of more distribution centers and agents. The supply chain costs can be significantly reduced by implementing optimal inventory control methodologies. These techniques control the inventory in such a way that, the members of the supply chain will remain unaffected by surplus as well as shortage of inventory. This paper presents a comparison between two different optimization techniques and the results which provide a proof for showing an efficient algorithm of the two to optimize an inventory system.