Research on Inventory Sustainable Development Strategy for Maximizing Cost-Effectiveness in Supply Chain

Sunyu Tao, Shenglin Liu, Huijie Zhou () and Xiaoyan Mao
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Sunyu Tao: College of Science and Technology, Ningbo University, Ningbo 315300, China
Shenglin Liu: College of Science and Technology, Ningbo University, Ningbo 315300, China
Huijie Zhou: College of Science and Technology, Ningbo University, Ningbo 315300, China
Xiaoyan Mao: College of Science and Technology, Ningbo University, Ningbo 315300, China

Sustainability, 2024, vol. 16, issue 11, 1-23

Abstract: This study addresses the challenges of the expanding global online retail market by developing an innovative inventory management strategy that promotes sustainable development. We propose an integrated planning model that utilizes a newly enhanced Parallel Chicken Swarm Optimization (PCSO) algorithm alongside the established Economic Order Quantity (EOQ) model and the (s, S) inventory policy. Our model demonstrates its effectiveness through simulation experiments, showcasing its ability to dynamically adjust inventory thresholds based on daily forecasted demand, which significantly optimizes replenishment strategies. Notably, our model achieves a total cost reduction while maintaining a high service level of 0.761467 and reduces computational time to 82.32 s, highlighting its efficiency and adaptability. The innovation of this research lies in the application of the PCSO algorithm to dynamically manage inventory in real-time, aligning with sustainable inventory management practices. This study significantly contributes to the field by enhancing the economic and environmental sustainability of supply chain operations.

Keywords: supply chain management; economic order quantity model; inventory strategy; parallel chicken swarm optimization algorithm; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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