The OMDS/BALOR Talk Series invites you to a seminar talk by Prof. Francesco Pilati on “Bi-objective inventory policy with comprehensive environmental factors formulation and service-level constraints.”
- Time: Monday, March 4, 2024, at 4 pm
- Location: Seminar Room 5, OMP-1
- Abstract:
As firms and consumers engage with environmental issues, decisions on inventory control need to consider this perspective of sustainability. This problem can be tackled via an explicit estimation of the environmental drivers of maintaining inventory in a warehouse, to be paired with the economic perspective within a transparent multi-objective optimization framework.
With this goal, this paper builds on a detailed estimation of environmental and cost factors for a continuous-review inventory policy. The bi-objective problem is tackled by keeping the objective functions separate. In particular, the modeling of greenhouse gas emission or cost performance factors for the inventory encompasses factors that can be affected and depend on the decision variables, taking into account aspects such as warehouse location, building characterization, energy usage, and transport requirements. The effects of the emission drivers on the multi-objective optimization decisions are analyzed, considering that the problem can be constrained by multiple service-level measures. Stockout response can be multifaceted and different service-level measures capture different aspects of inventory shortages.
