Nonpre-Emptive Integer Nonlinear Goal Programming Model for Multi-Item Inventory Problem: Case Study of a Car Retail Centre in Lagos State.
DOI:
https://doi.org/10.54536/ajmri.v1i2.260Keywords:
Non-preemptive programming, Nonlinear programming , Goal Programming , Multi-Item Inventory , Economic Order Quantity.Abstract
Most of the real-world optimization problems involve multiple objectives with constraint resources. Retailers oftentimes anticipate demand, they stock, and maintain warehouses with different variety of products at high cost to meet prospecting customers' demand. In this paper, a Non-preemptive Integer Nonlinear Goal Programming (NINGP) model was developed for obtaining Economic Order Quantities (EOQ) of multi-item inventory problems that satisfy the multiple and conflicting objectives of the Decision Maker (DM). The particular case considered was that of a motor vehicle dealer who sells 10 brands of Tokunbo vehicles and wants to determine the EOQ for each brand such that the deviations from the aspiration level are minimized. Using LINGO 17.0 Software to solve the NINGP model, the EOQ allocated to each brand type from 1 through 10 are 2, 2, 5, 2, 2, 3 3, 3, 3, and 3 cars respectively. The optimal number of cars was 28 with the associated cost of ₦53,825,915. Compared to the estimated budget of ₦60,000,000, the NINGP approach was able to achieve a 10% (₦6,174,085) below budget. With proper modifications considering the associated constraints, related inventory problems can be solved using the NINGP model.
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Copyright (c) 2022 Temitope Ogunleye, Mogbojuri A.O, Adeyeye, A. D
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