Application of a Tuned Fruit Fly Optimization algorithm in an Inventory-Supply Chain Problem under Uncertainty

This study focuses on a mixed (r, S) and periodic inventory policy in a multi-product two-echelon supply chain problem where the suppliers produce different items and store them in their warehouses. In the model which is considered to be mixed-integer binary nonlinear programming, shortages are not allowed and the demands follow a normal probability distribution. The suppliersâ€™ warehouse capacity, production volume, and total available budget are restricted. The goal is to obtain the optimal order quantities placed by the buyers to the suppliers so that the total supply chain costs are minimized. While the model is considered to be NP-hard under some real-world constraints, a Fruit Fly Optimization (FFO) algorithm is improved to solve the problem. Some numerical examples are solved to evaluate the algorithm performance as well. Keywords - Mixed continuous and periodic review; inventory control problem; two-echelon supply chain; fruit fly optimization.