Skip to main content
SpringerLink
Log in

Optimization of Inventory Management: A Literature Review

  • Conference paper
  • First Online:
Digital Technologies and Applications (ICDTA 2023)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 669))

Included in the following conference series:

  • 825 Accesses

Abstract

Inventory management (IM) is an essential component of the Supply Chain (SC). Maintaining the proper stock level through the SC optimizes the company’s costs and guarantees the delivery of goods to customers, ensuring their satisfaction. However, the diverse and numerous factors (demand, perishability, shortage, etc.) cause the IM problem's complexity as they influence the Inventory Management Optimization (IMO) process. This diversity triggers researchers to further examine of the IMO in view of the fact that these factors are interrelated. This paper reviews part of the work carried out, dealing with the optimization of the IM problem. The main objective of this study is to analyze different parameters of existing mathematical models of IMO, to deliver an overview describing the main factors of the problem.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 229.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 299.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Taşkin Gümüş, A., Kocaoğlu, B., Kocaoğlu, Y.: Supply chain optimization studies: a literature review and classification. dogus 1, 79–98 (2018). https://doi.org/10.31671/dogus.2018.16

  2. van Goor, A.R., van Amstel, M.J.P., van Amstel, W.P.: Trends in supply chain management. In: European distribution and supply chain logistics, 1st ed. Routledge, pp. 45–75 (2019)

    Google Scholar 

  3. Gutiérrez, V., Vidal, C.J.: Modelos de gestión de inventarios en cadenas de abastecimiento: revisión de la literatura

    Google Scholar 

  4. Ziukov, S.: A literature review on models of inventory management under uncertainty. BSE 5, 26 (2015). https://doi.org/10.13165/VSE-15-5-1-03

  5. Arnold, J.R.T., Chapman, S.N., Clive, L.M.: Introduction to materials management, 6th ed. Pearson Prentice Hall, Upper Saddle River, N.J (2008)

    Google Scholar 

  6. Basa, J.J.A.: Smart inventory management system for photovoltaic-powered freezer using wireless sensor network. IJETER 7, 393–397 (2019). https://doi.org/10.30534/ijeter/2019/057102019

  7. Sustrova, T.: A suitable artificial intelligence model for inventory level optimization. Trends Econ. Manage. 10, 48 (2016). https://doi.org/10.13164/trends.2016.25.48

  8. Hariri, A.M.A., Abou-El-Ata, M.O.: Multi-item production lot-size inventory model with varying order cost under a restriction: a geometric programming approach. Prod. Plan. Control 8, 179–182 (1997). https://doi.org/10.1080/095372897235442

    Article  Google Scholar 

  9. Bretthauer, K.M., Shetty, B., Syam, S., Vokurka, R.J.: Production and inventory management under multiple resource constraints. Math. Comput. Model. 44, 85–95 (2006). https://doi.org/10.1016/j.mcm.2005.12.009

    Article  MathSciNet  MATH  Google Scholar 

  10. Uthayakumar, R., Priyan, S.: Pharmaceutical supply chain and inventory management strategies: optimization for a pharmaceutical company and a hospital. Oper. Res. Health Care 2, 52–64 (2013). https://doi.org/10.1016/j.orhc.2013.08.001

    Article  Google Scholar 

  11. Lim, Y.F., Wang, C.: Inventory management based on target-oriented robust optimization. Manage. Sci. 63, 4409–4427 (2017). https://doi.org/10.1287/mnsc.2016.2565

    Article  Google Scholar 

  12. Alawneh, F., Zhang, G.: Dual-channel warehouse and inventory management with stochastic demand. Transp. Res. Part E: Logist. Transp. Rev. 112, 84–106 (2018). https://doi.org/10.1016/j.tre.2017.12.012

    Article  Google Scholar 

  13. Williams, B.D., Tokar, T.: A review of inventory management research in major logistics journals: themes and future directions. Int. J. Logist. Manage. 19, 212–232 (2008). https://doi.org/10.1108/09574090810895960

    Article  Google Scholar 

  14. Balcik, B., Bozkir, C.D.C., Kundakcioglu, O.E.: A literature review on inventory management in humanitarian supply chains. Surv. Oper. Res. Manage. Sci. 21, 101–116 (2016). https://doi.org/10.1016/j.sorms.2016.10.002

    Article  MathSciNet  Google Scholar 

  15. Chakrabortty, S., Pal, M., Nayak, P.K.: Intuitionistic fuzzy optimization technique for Pareto optimal solution of manufacturing inventory models with shortages. Eur. J. Oper. Res. 228, 381–387 (2013). https://doi.org/10.1016/j.ejor.2013.01.046

    Article  MathSciNet  MATH  Google Scholar 

  16. Kumar, P., Dutta, D.: Multi-objective linear fractional inventory model of multi-products with price-dependant demand rate in fuzzy environment. IJMOR 7, 547 (2015). https://doi.org/10.1504/IJMOR.2015.071280

    Article  MATH  Google Scholar 

  17. Ahmadini, A.A.H., Modibbo, U.M., Shaikh, A.A., Ali, I.: Multi-objective optimization modelling of sustainable green supply chain in inventory and production management. Alex. Eng. J. 60, 5129–5146 (2021). https://doi.org/10.1016/j.aej.2021.03.075

    Article  Google Scholar 

  18. Shafiee, F., Kazemi, A., Jafarnejad Chaghooshi, A., Sazvar, Z., Amoozad Mahdiraji, H.: A robust multi-objective optimization model for inventory and production management with environmental and social consideration: a real case of dairy industry. J. Clean. Prod. 294, 126230 (2021). https://doi.org/10.1016/j.jclepro.2021.126230

    Article  Google Scholar 

  19. Sbai, N., Berrado, A.: A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain. MATEC Web Conf. 200, 00013 (2018). https://doi.org/10.1051/matecconf/201820000013

  20. Sun, J.: A review of multi-echelon inventory control in supply chain. OJBM 08, 881–891 (2020). https://doi.org/10.4236/ojbm.2020.82054

    Article  Google Scholar 

  21. Alimardani, M., Rafiei, H., Rabbani, M.: A novel approach toward coordinated inventory management of an agile multi-echelon multi-product supply chain. Cogent Eng. 2, 1025596 (2015). https://doi.org/10.1080/23311916.2015.1025596

    Article  Google Scholar 

  22. Nguyen, D.H., Chen, H.: Optimization of a perishable inventory system with both stochastic demand and supply: comparison of two scenario approaches. Cro Oper Res Rev 10,175–185 (2019). https://doi.org/10.17535/crorr.2019.0016

  23. Hooshangi-Tabrizi, P., Hashemi Doulabi, H., Contreras, I., Bhuiyan, N.: Two-stage robust optimization for perishable inventory management with order modification. Expert Syst. Appl. 193, 116346 (2022). https://doi.org/10.1016/j.eswa.2021.116346

    Article  Google Scholar 

  24. Giallombardo, G., Mirabelli, G., Solina, V.: An integrated model for the harvest, storage, and distribution of perishable crops. Appl. Sci. 11, 6855 (2021). https://doi.org/10.3390/app11156855

    Article  Google Scholar 

  25. Perez, H.D., Hubbs, C.D., Li, C., Grossmann, I.E.: Algorithmic approaches to inventory management optimization. Processes 9, 102 (2021).https://doi.org/10.3390/pr9010102

  26. Sajadi, S.J., Ahmadi, A.: An integrated optimization model and metaheuristics for assortment planning, shelf space allocation, and inventory management of perishable products: a real application. PLoS ONE 17, e0264186 (2022). https://doi.org/10.1371/journal.pone.0264186

    Article  Google Scholar 

  27. San-José, L.A., Sicilia, J., González-de-la-Rosa, M., Febles-Acosta, J.: Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle. Ann. Oper. Res. 316, 1–21 (2021). https://doi.org/10.1007/s10479-021-04161-6

    Article  MathSciNet  MATH  Google Scholar 

  28. Sebatjane, M., Adetunji, O.: Optimal lot-sizing and shipment decisions in a three-echelon supply chain for growing items with inventory level- and expiration date-dependent demand. Appl. Math. Model. 90, 1204–1225 (2021). https://doi.org/10.1016/j.apm.2020.10.021

    Article  MathSciNet  MATH  Google Scholar 

  29. Abu Zwaida, T., Pham, C., Beauregard, Y.: Optimization of inventory management to prevent drug shortages in the hospital supply chain. Appl. Sci. 11, 2726 (2021).https://doi.org/10.3390/app11062726

  30. Rzepecki, L.: Optimization of inventory costs management in the construction enterprise. IOP Conf Ser: Mater Sci Eng 603, 032046 (2019). https://doi.org/10.1088/1757-899X/603/3/032046

    Article  Google Scholar 

  31. De, S.K., Sana, S.S.: A multi-periods production–inventory model with capacity constraints for multi-manufacturers – a global optimality in intuitionistic fuzzy environment. Appl. Math. Comput. 242, 825–841 (2014). https://doi.org/10.1016/j.amc.2014.06.075

    Article  MathSciNet  MATH  Google Scholar 

  32. Kosorukov, O.A., Sviridova, O.A.: Effective strategy formation models for inventory management under the conditions of uncertainty. IES 8, 64 (2015). https://doi.org/10.5539/ies.v8n7p64

  33. Kumar, S., Mahapatra, R.P.: Design of multi-warehouse inventory model for an optimal replenishment policy using a rain optimization algorithm. Knowl.-Based Syst. 231, 107406 (2021). https://doi.org/10.1016/j.knosys.2021.107406

    Article  Google Scholar 

  34. Mawengkang, H.: An optimization model for hospitals inventory management in pharmaceutical supply chain. Supply Chain 11, 324–332 (2020)

    Google Scholar 

  35. Paam, P., Berretta, R., Heydar, M., García-Flores, R.: The impact of inventory management on economic and environmental sustainability in the apple industry. Comput. Electron. Agric. 163, 104848 (2019). https://doi.org/10.1016/j.compag.2019.06.003

    Article  Google Scholar 

  36. Saputro, T.E., Figueira, G., Almada-Lobo, B.: Integration of supplier selection and inventory management under supply disruptions. IFAC-PapersOnLine 52, 2827–2832 (2019). https://doi.org/10.1016/j.ifacol.2019.11.637

    Article  Google Scholar 

  37. Teerasoponpong, S., Sopadang, A.: Decision support system for adaptive sourcing and inventory management in small- and medium-sized enterprises. Robot. Comput.-Integr. Manuf. 73, 102226 (2022). https://doi.org/10.1016/j.rcim.2021.102226

    Article  Google Scholar 

  38. Chen, Z., An, C., Chen, X., Taylor, E., Bagchi, A., Tian, X.: Inexact inventory-theory-based optimization of oily waste management system in shoreline spill response. Sci. Total Environ. 777, 146078 (2021). https://doi.org/10.1016/j.scitotenv.2021.146078

    Article  Google Scholar 

  39. Rohatgi, P., Agrawal, S.: Optimization of EOQ of multi-item inventory control problem through nonlinear programming technique, 9 (2005)

    Google Scholar 

  40. Sadeghi, J., Mousavi, S.M., Niaki, S.T.A.: optimizing an inventory model with fuzzy demand, backordering, and discount using a hybrid imperialist competitive algorithm. Appl. Math. Model. 40, 7318–7335 (2016). https://doi.org/10.1016/j.apm.2016.03.013

    Article  MathSciNet  MATH  Google Scholar 

  41. Agrawal, A., Vijayvargy, L., Gupta, S.: A deterministic multi-objective optimization process of multi-item inventory management in FMCG industry. IJRTE 8, 261–266 (2020). https://doi.org/10.35940/ijrte.D9192.018520

Download references

Author information

Authors and Affiliations

  1. IA Laboratory, FS Meknes, Moulay Ismail University of Meknes, Meknes, Morocco

    Nabila Bouti & Ibrahim Boukallal

  2. IA Laboratory, FLSH Meknes, Moulay Ismail University of Meknes, Meknes, Morocco

    Fatima El Khoukhi

Authors
  1. Nabila Bouti
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ibrahim Boukallal
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Fatima El Khoukhi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Nabila Bouti .

Editor information

Editors and Affiliations

  1. Ecole Nationale des Sciences Appliquées, Fez, Morocco

    Saad Motahhir

  2. Faculty of Sciences, Sidi Mohamed Ben Abdellah University, Fez, Morocco

    Badre Bossoufi

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Bouti, N., Boukallal, I., El Khoukhi, F. (2023). Optimization of Inventory Management: A Literature Review. In: Motahhir, S., Bossoufi, B. (eds) Digital Technologies and Applications. ICDTA 2023. Lecture Notes in Networks and Systems, vol 669. Springer, Cham. https://doi.org/10.1007/978-3-031-29860-8_92

Download citation

Publish with us

Policies and ethics

Search

Navigation