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Material supply in enterprises with non-flow production and service organization – part 2

The presented problems of optimizing material inventory levels in enterprises with non-flow production and service organization can be solved using the heuristic programming method.
It constitutes a combination of mathematical and heuristic methods. Heuristic methods, alongside algorithmic methods, are methods from the field of artificial intelligence. An algorithm is a set of rules which, if followed precisely, will certainly lead to the desired solution. A heuristic, on the other hand, is a set of rules which, if followed, may lead to a solution, but do not guarantee it. The program should imitate the actions of an experienced warehouse worker focused on tracking the flow stream of a specific material, reasoning, and making decisions regarding the order quantities required at a given moment. The effect of the algorithm’s operation in the form of suggested inventory replenishment quantities should be characterized by high effectiveness in reducing material costs.
The article comes from the magazine “Logistyka” 2002/4.

L2002-4s61.pdf