Inventory strategy optimization for multi-location emergency supply system based on time constraints

The problem of time-based inventory service level in an emergency items supply system is studied in this paper. A two-echelon system consisting of a central supply location and multiple different local supply locations which faces with the stochastic items demands is considered. The local supply locations’inventory strategy optimization model with time constraints under the transshipment mode based on the nearest principle is developed when the stockout happens in local supply locations, then, the effects to the inventory strategy with other transportation modes i.e. the stochastic transshipment mode and no transshipment mode based on the modification of the developed model are analyzed, and the PSO algorithm is used to solve and analyze the problem at last. The result shows that the inventory strategy with the nearest principle mode has a higher service level, and its strength is more significant compared to the others when the time constraints tightened.