A Hybrid Metaheuristic for the Omnichannel Multiproduct Inventory Replenishment Problem

Abstract

In the current paradigm for the retail industry, which is experiencing a rapid evolution, especially in textile companies, the generic problem of product allocation in a distribution and supply chain consisting of one main warehouse and several locations, belonging to different sales channels, is a challenge. The omnichannel replenishment process focuses on dynamically optimizing a shop or intermediate warehouse inventory for a wide range of products based on a forecast of sales, in order to fulfill the demand of all of the channels considered. In this context, the aims of this work were (a) to optimize inventory replenishment for multiple channels and products that are not perishable but devalue over time, and (b) to implement a methodology that combines the benefits of the Particle Swarm Optimization metaheuristic and Simulated Annealing. This study was carried out for different sales periods, channels and product configurations by performing a sensitivity analysis between the way new solutions are updated and the degree of intensification used in local search.

Keywords

• omnichannel
• multiproduct
• replenishment
• metaheuristics
• Particle Swarm Optimization
• Simulated Annealing