A Deterministic Multi-Objective Optimization Process of Multi-Item Inventory Management in Fmcg Industry

Abstract

The inventory management is the crucial part of any of the company’s, and nowadays, they find challenging to perceive out the optimal quantity level needed to overcome from shortages problem and also to reduce the wastages.In this paper, we used a multi-criteria decision-making for formulating the inventory management problem without shortages with the aim of optimizing profit and holding cost of the company simultaneously. We have also considered both ordering cost and storage cost as a non-linear function of the rapid stock level. In addition we used linear goal programming to find out the minimum optimal quantity level to put in the inventory to reduce out of stock situation. Finally, a numerical illustration of FMCG Company has been taken to show the application of proposed work.