Intelligent optimization for an integrated inventory model with multi-product and multi-storehouse

Multi-product and multi-storehouse retailer companies are very common all over the world. For such companies, inventory management is a critical activity for determining their success. In this context, mathematical inventory models are useful to help finding optimal solutions for answering typical retailer company questions such as: when to order, how many products to order, where to store and what is the optimal retail price for a given product. In this paper, we propose a novel integrated supplier-buyer inventory model able to optimize operations of multi-product and multi-storehouse retailers. The optimal solution to the inventory model is found using swarm intelligence based on particle swarm optimization (PSO). Experimental results of the proposed model showed that the considered optimization is feasible and is not excessively computationally intensive. In addition to that, our approach allows the inclusion of strategic policies in that optimization model.