DOI: https://doi.org/10.14710/jfma.v8i1.25758

COORDINATING AND OPTIMIZING TWO-WAREHOUSE INVENTORY SYSTEMS: A MATHEMATICAL PROGRAMMING APPROACH

*Sutrisno Sutrisno  -  Dept. of Mathematics, Universitas Diponegoro, Indonesia
Widowati Widowati  -  Dept. of Mathematics, Universitas Diponegoro, Indonesia
Moh. Ivan Azis  -  Dept. of Mathematics, Universitas Hasanuddin, Indonesia
Dipo Aldila  -  Dept. of Mathematics, Universitas Indonesia, Indonesia

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Abstract
Effective supplier and carrier selection plays a pivotal role in supply chain management, ensuring maximum profitability. This study introduces an innovative decision-support system designed for supplier and carrier selection problems in static two-warehouse inventory systems. The model assumes warehouse collaboration, where warehouses consolidate efforts to fulfill overall demand. To address this, a mathematical programming approach is developed and solved using the LINGO 21.0 optimization software. Experimental results reveal that the proposed model delivers optimal decisions. Even though challenges are still available on the constraint functions and the derivation of parameters' values, the results provide positive managerial insights that offer valuable tools for stakeholders to improve supply chain efficiency.
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Keywords: Mathematical modeling; Optimization; Mathematical Programming; Inventory System; Carrier Selection; Supplier Selection

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Section: FUNDAMENTAL MATHEMATICS AND APPLICATIONS
Language : EN
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