A multi-location inventory system with transshipments and its heuristic algorithm

The multi-location inventory problem is one of the most widely investigated fields in mathematical inventory theory because it is becoming more important to have an efficient tool to deal with the flow of goods through various locations for a complex logistics system. In this paper, we consider a multi-location inventory system with transshipments. Each location maintains its own stock to meet its requirements. Transshipment takes place between locations when the inventory level reaches its safety quantity at some location. We construct a multi-location inventory model with transshipments. The optimization is implemented in two stages. We firstly determine the redistribution scheme, then design a parallel genetic search method to determine the optimal ordering policy. Finally, we analyze the timing results for the algorithm´s implementation on a parallel computer.