A metaheuristic approach to solving a multiproduct EOQ-based inventory problem with storage space constraints

Abstract

This paper considers the well-known static time-continuous multiproduct economic order quantity (EOQ) based inventory management problem with the storage space constraints. This problem is modelled as a combinatorial optimization problem in the corresponding dynamic discrete time system control process. In order to solve this problem approximately, we developed two heuristics: a special heuristic based on a local search technique and a metaheuristic procedure based on the variable neighbourhood search principle. The efficiency of two heuristics is preliminary examined and compared on several randomly generated instances with the same number of products.