Modeling the Material-Inventory Transportation Problem Using Multi-Objective Optimization

TL;DR

This paper presents a multi-objective optimization model to improve material-inventory transportation in supply chains, aiming to reduce costs and enhance production planning in Industry 4.0 environments.

Contribution

It introduces a novel model integrating inventory, production, and transportation planning to address factory material transfer challenges.

Findings

The model effectively minimizes total production and transportation costs.

It demonstrates improved supply chain efficiency through optimized material transfers.

The approach supports better decision-making in Industry 4.0 supply chain management.

Abstract

In the era of industry 4.0, procurement in supply chain management is the key to developing information management systems. It directly affects production planning failure. In this case, it is the process to prepare and confirming the material inventory is in the ordinal stages and be able to produce the products in any production line. In terms of industrial informatics, it can provide information management approaches for leveraging data sharing between factories. The multiobjective optimization will be enabled by integrating material inventory, production planning and monitoring, and transportation planning collaboration. The material-inventory transportation problem is the virtual factory situation when production plan failure occurs. It becomes the cost to transport material between each factory and the distribution to clients. In this study, the question of the material-inventory transportation problem is: How can we transport other materials from one factory into another factory? This study proposed a model to find out about the adjustment of material inventory through transportation. The objective of this model is to minimize the whole production cost and total transportation cost.