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Extensive Analysis and Prediction of Optimal Inventory levels in supply chain management based on Particle Swarm Optimization Algorithm

Efficient inventory management is a complex process which entails the management of the inventory in the whole supply chain. The dynamic nature of the excess stock level and shortage level from one period to another is a serious issue. In addition, consideration of multiple products and more supply chain members leads to very complex inventory management process. Moreover, the supply chain cost increases because of the influence of lead times for supplying the stocks as well as the raw materials. A better optimization methodology would consider all these factors in the prediction of the optimal stock levels to be maintained in order to minimize the total supply chain cost. Here, we are proposing an optimization methodology that utilizes the Particle Swarm Optimization algorithm, one of the best optimization algorithms, to overcome the impasse in maintaining the optimal stock levels at each member of the supply chain.