Sunday , December 16 2018

Solving a Novel Multi-Objective Inventory Location Problem by means of a Local Search Algorithm

Carolina LAGOS1, Jorge VEGA2,
Guillermo GUERRERO1, Jose-Miguel RUBIO3

1 Pontificia Universidad Católica de Valparaíso, Chile

{carolina.lagos.c; guillermo.guerrero.c}@mail.pucv.cl
Universidad de Antofagasta, Chile

jorge.vega@uantofa.cl
Universidad de Playa Ancha, Chile

jose.rubio.l@upla.cl

Abstract:  Problems in operations research are usually modelled as single objective ones even though there exist several goals that should be attained. Multiple reasons of why inherently multi-objective problems are modelled as single objective can be identified: better understanding of the problem features, simplification of the mathematical formulation of the problem, among others. However, summarising (usually conflicting) objectives into one objective function can be a sign of over-simplification in the problem modelling process. In this paper we extend a single objective inventory location problem formulation to a multi-objective one. We consider two conflicting objectives, namely, location cost and inventory cost. As a result, we obtain a complex multi-objective non-linear integer programming problem. Like its single objective formulation, this multi-objective problem cannot be solved by exact methods as the number of decision variables increases. Thus, a simple yet effective multi-objective local search algorithm is implemented in this paper.

Keywords: MO Local Search, MO Inventory Location, Combinatorial Optimisation.

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CITE THIS PAPER AS
: Carolina LAGOS, Jorge VEGA, Guillermo GUERRERO, Jose-Miguel RUBIO, Solving a Novel Multi-Objective Inventory Location Problem by means of a Local Search Algorithm, Studies in Informatics and Control, ISSN 1220-1766, vol. 25(2), pp. 189-194, 2016.

https://doi.org/10.24846/v25i2y201606