INTERNATIONAL UNIVERSITY

Departure: Industry and Engineering Management

Instructor: Dr. Nguyen Van Hop
Subject: Inventory Management

INVENTORY
MANAGEMENT


Group 1’s members:

1. Huỳnh Ngọc Tú – IELSIU17113
2. Nguyễn Đạt Tấn Phước – IEIEIU17038
3. Trịnh Gia Phú – IELSIU17014
4. Trịnh Sơn Tùng – IELSIU17125
 CONTENTS
!

Introduction ...........................................................2

Summarize the case................................................3

System description ......................................... 3

Problem statement 4

Scope 5

Limitation 5

Model formulation and description6

Problem process 6

Notation 7

Mathematical model 11

Implement the model in Cplex or Lingo 12

Sensitivity analysis and result analysis 22

Tasks and distribution 22

!

1. Introduction

Kreng’s model is developed to an optimal lot-sizing model of the replenishments in an EPQ model
with defective products. Unlike the basic model, the model used in this study was developed to act as
a multi-product one. Also, by converting 3 the initial model from NLP to MINLP type, we have
brought our developed model closer to the real-world conditions. The significance of the two
decision variables which are integer values for both the number of shipments and the shipment
quantity of products, we extended the developed model by employing the integer variables instead of
nonlinear values. Furthermore, by limiting the original model along with various potential
constraints such as space cost limit, screening cost limit, disposal cost limit and procurement cost
limit, the model has become practical and realistic enough to cover uncontrollable distance between
models in the real world and remote model. This system uses Lp-metric method to Integrate our
evolved biological target model into a single target function. This single goal function minimizes
total inventory costs and maximizes total returns simultaneously to find the optimal values for all
products, not only for defective items.

In general, it can be safe to say that the novelty and contribution of the current development report
are as follows:

• Design and optimize the two-goal, multi-product EPQ model and limit product defects to achieve
optimal complementary judgment.

• Apply GCD algorithm to solve MINLP model, large-scale and random.

• An excellent performance of the proposed solution is the current modeling solution under the
optimal solution and the number of iterations performed based on the sensitivity analysis and the
results of the numerical examples.

• Calculate other criteria such as double non-feasibility, violation of constraint and additionality, for
numerical examples.

• There are industrial applications for practical economic purposes by simulating real world
conditions with the proposed model.

• Multi-product and dual-goal opposites of the original model besides considering product defects,
the stochastic constraints and the profit function.

. Make the model more realistic and realistic with the help of various random constraints so that it
can bridge the uncontrollable distance between the real world model and the far mode.

2. Summarize the case

!

2.3 Scope

We intend to develop the researched model by considering simultaneous scheduling and batch sizing
with multiple parallel machines under just-in-time manufacturing system with the sequence-dependent
setups and upgrade the mathematical model by considering assuming as two types, backorder and lost
sales.

2.4 Limitation

The mathematical formulation of the problem is stochastic, nonlinear, and large. In this regard, the
interior point algorithm that is developed as more effective algorithm with less iteration is used for
solving the recent convex nonlinear model. Minimizing total noise and lag penalties for machines in
the new multi-product EPQ model with many parallel machines and depending on the sequence Setup,
has not to be resolved yet.
Model formulation and
!

3. Model formulation and description

3.1 Process problem

λj*qj

Manufactor jth
products with the
quantity of λj*qj
Projduc
Product t jth
ith
End Tj Sàn lọc sản phẩm
Product
xth

server the demand

Storage
Dj
!
Dispose

Cycle time T
Diagram 1. The process of this article model.

3.2 Notation

Parameters
n : Number of products
Dj : Demand rate of product j
hj : Holding cost of product j per unit held in time unit
Pj : Production rate of product j
!

cj : Procurement cost per unit of product j

fj : Space (within 1 shipment) occupied by each unit of product j
µ : The mean of resources
σ2 : The variance of resources
α : The probability of violating each of the stochastic constraints
Qj (= λj*qj) : Replenishment quantity per replenishment
βj : Percentage of defective (include bad and imperfect products) products in Qj
ϕj : Percentage of scrapt products in βj
sj : Unit screening cost for product j
Aj : Fixed replenishment cost per replenishment
S : Maximum screening cost for all products
X : Maximum disposal cost for all scrap products
F : Maximum space for all products
C : Maximum procurement cost for all products
Ij : Unit selling price of imperfect products
uj : Unit selling price of good products (uj > Ij)
dj : Unit disposal cost for jth scrap product
TC : Total inventory costs
TP : Total profits
Z : The critical point of the standard normal value for α

Decision variable
qj : Shipment quantity of product j
λj : Number of shipments for product j
3.3.Mathematical model:

In this model, we focus on the main goal is that optimizing the total cost for all the n product types,
whereares we also optimize the total profit TP that come from these product types.
That is, for the n item type within the cycle period T, we must plan to produce qj shipment quantiy and
λj shipments for product j, such that:
- Maximum profit
- Minimum total cost
To solve the problem with many objects as above, with 2 goals, (Multiple Objective Decision Making
– MODM model), we have to analyze the formula of cost and projit in this problem.
!

1. Total cost

According to the author, by observing figure 1 (in the report), which represents the inventory for one
cycle time T (for all jth commodity categories), we can easily see the cost for each Items within T, they
are:
a. Total procurement cost in the T-period for all products j.
n

∑( j
- r ocu r emen t Cost (PC ) =
P A + cj*λj*qj)
j=1

b. Total screening cost within the T-period all products j.

n

∑(
- Scr eeni ng cost (SC) = sj*λj*qj)
j=1
!

c. Total disposal cost for bad items of product jth all products j.
n
- i sposa l Cost (DC ) = (dj*φj*βj*(λj*qj))
∑
D
j=1

d. Total holding cost for the all the products j.

(Pj − Dj)*(λj*qj) (Pj − Dj)*(λj*qj ) (1 − βj)*(λj*qj)

2
n λj*qj
- di ng Cost (Ch) =   ∑ (hj*(
Hol +( −  φj*βj*(λj*qj) + (1 − φj)*βj*(λj*qj )))*( − ))
j=1 2*Pj 2 Pj 2*Dj 2*Pj

⇨ With all the above type of cost, we have the total cost for all types of product has the fomula:

- Tot a l Cost (TC) = PC + SC + DC +  Ch 

(Pj − Dj)*(λj*qj) (Pj − Dj)*(λj*qj ) (1 − βj)*(λj*qj)
2
n n n n λj*qj
- = ∑ (A + c *λ *q ) + ∑ (s *λ *q ) + ∑ (d *φ *β *(λ *q )) + ∑ (h *(
j j j j j j j j j j j j j
2*Pj 2
+(
Pj
−  φj*βj*(λj*qj) + (1 − φj)*βj*(λj*qj )))*(
2*Dj
−
2*Pj
))
j=1 j=1 j=1 j=1

2. Total Profit Function

By observing the above diagram, Diagram 1, we can see that the company can make a profit from
selling imperfect and perfect products. Thus, the company's total profit in this problem will come from:
a. Selling good products
n
(uj*(1 − βj)*(λj*qj))
∑
- TP(G oo d P r o du ct) =
j=1

b. Selling the imperfect products

n
(Ij*(1 − φj)*βj*(λj*qj))
∑
- TP(Im per fect P r o du ct) =
j=1

With the above explanation, the total profit that company has earned in a period T will be calculated by
using the following formula:

TP
- = TP(G oo d P r o du ct) + TP(Im per fect P r o du ct)
n n
(uj*(1 − βj)*(λj*qj)) + (Ij*(1 − φj)*βj*(λj*qj))
∑ ∑
-=
j=1 j=1

3. Single Objective Function:

!

As we mentioned earlier, an ideal inventory model is the one that can satisfiy our minimum total cost
TC and maximizes our Total profits TP. However, in the reality, you cannot get a nutritious dish at a
very low price. That is the reason why we have to find a way, combine both the Total costs TC and
Total profits TP together into a single objective, then solve the problem based on that objective.
However, the result might not be able to satisfy both original objectives because the two factors of
profit and cost are conflicting to each other.
From MCDM's knowledge, Lp-metric Function is a useful tool for us to combine the two objectives
above into a single objective. Lp-metric is simply a way to combine two objectives together by
measuring the difference of each component objective with the optimal solution of objective
respectively, thereby minimizing the distance of all objective to their OBJECTIVE SOLUTIONS. This
means that from the object still cannot achieve its own OBJECTIVE SOLUITON, the sums of the
above differences will be minimal (Aryanezhad, Jabbarzadeh, & Zareei, 2009; Mazdeh, Zaerpour,
Zareei, & Hajinezhad, 2010).
Suppose by using OR application in solving problems with each objective individually, we can get TC
* and TP * where:
- TP * is the maximum profit your business will get.

- TC * is the minimum cost for your business.

And:
- W1 is the cost weight (in%) and is set by the decision maker.

- W2 is the profit weight (in%) and is set by the decision maker.

A single objective that we get after using LP-Metric method is:

TC − TC* TP − TP*
( )
- n Z = W1*
Mi + W 2*( )
TC* TP*
In this problem, we decide to let W1 = W2 = 0.5 which means the importance of cost and profit factors
is equal. From that point, our final single objective will be:
TC − TC* TP − TP*
( )
- n Z =
Mi +( )
TC* TP*
4. Subject to:
We have the cost will come from the four types of cost: space cost, procurement cost, screening cost
and disposal cost. Each Type of cost follow the distribution which:
µ : The mean of resources
σ2 : The variance of resources
With the four types of cost, their limitation should be (µ- Z!. σ) where Z! is the upper !-percentitle of
the standard normal distribution.
The constrains of the model will come from the 4 main parts:
!

a. The total space cost of good and imperfect products in one cycle.

We have the total space (for each unit product) cost of good and imperfect products is:
n
( fj*λ j *qj*(1 − βj) + fj*qj*λ j *βj*(1 − φj)) ≤ F
∑
- Tot a l Spa ce cost =  
j=1

b. The total procurement cost of products in one cycle.

n

∑
- Tot a l P r ocu r emen t cost =   cj*λj*qj ≤ C
j=1

c. The total screening cost of products in one cycle.

n

∑
- Tot a l Scr eeni ng cost =   sj*λj*qj ≤ S
j=1

d. The total disposal cost of products in one cycle.

n

∑
- Tot a l D i sposa l cost =   dj*λj*qj*βj*φj ≤ X
j=1

However, we have α is the probability of violating each of the stochastic constraints, and
constrains are followed the normal distribution with:
µ : The mean of resources
σ2 : The variance of resources
By the above conditions we have the final contrains for our model are:
n
( fj*qj**λ j *(1 − βj) + fj*qj*λ j*βj*(1 − φj)) ≤ maxF
∑
(1) Tot
- a l Spa ce cost =  
j=1

∑
(2) Tot
- a l P r ocu r emen t cost =   cj*λj*qj ≤ maxC
j=1

∑
(3) Tot
- a l Scr eeni ng cost =   sj*λj*qj ≤ maxS
j=1

∑
(4) Tot
- a l D i sposa l cost =   dj*λj*qj*βj*φj ≤ maxX
j=1

Where:
maxF = -μ(F ) − Zα *σ (F )
maxC = -μ(C ) − Zα *σ (C )
!

maxS = -μ(S) − Zα *σ (S)

maxX = μ(X
- ) − Zα *σ (X )
TC − TC* TP − TP*
( )
! n Z =
Objective: Mi +( )
TC* TP*

4. Implement the model in CPLEX.

Data Table below

D h P c f F C µ ɕ β φ s A S X I u d
Product 3 11 9 2 3 70 200 40 15 0.1 0.02 2 200 26 170 13 16 44
1
Product 9 7 11 3 2 80 300 40 15 0.11 0.01 1 100 16 70 15 20 19
2

1. Calculating the optimal total cost (TCOS).

Parameters.
n : Number of products
Dj : Demand rate of product j
hj : Holding cost of product j per unit held in time unit
Pj : Production rate of product j
cj : Procurement cost per unit of product j
fj : Space (within 1 shipment) occupied by each unit of product j
βj : Percentage of defective (include bad and imperfect products) products in Qj
ϕj : Percentage of scrapt products in βj
sj : Unit screening cost for product j
Aj : Fixed replenishment cost per replenishment
maxS : Maximum screening cost for all products (MeanS – Za*STDS)
maxX : Maximum disposal cost for all scrap products (MeanX – Za*STDX)
maxF : Maximum space for all products (MeanF – Za*STDF)
maxC : Maximum procurement cost for all products (MeanC – Za*STDC)
dj : Unit disposal cost for jth scrap product
!

Decision variable
qj : Shipment quantity of product j
λj : Number of shipments for product j

Objective-Mi ni mi ze Tot a l Cost (TC ) 

(Pj − Dj)*(λj*qj) (Pj − Dj)*(λj*qj ) (1 − βj)*(λj*qj)
2
n n n n λj*qj
- = ∑ (A + c *λ *q ) + ∑ (s *λ *q ) + ∑ (d *φ *β *(λ *q )) + ∑ (h *(
j j j j j j j j j j j j j
2*Pj 2
+(
Pj
−  φj*βj*(λj*qj) + (1 − φj)*βj*(λj*qj )))*(
2*Dj
−
2*Pj
))
j=1 j=1 j=1 j=1

Subject to
n
( fj*qj*λ j *(1 − βj) + fj*qj*λ j *βj*(1 − φj)) ≤ maxF
∑
(1) Tot
- a l Spa ce cost =  
j=1

∑
(2) Tot
- a l P r ocu r emen t cost =   cj*λj*qj ≤ maxC
j=1

∑
(3) Tot
- a l Scr eeni ng cost =   sj*λj*qj ≤ maxS
j=1

∑
(4) Tot
- a l D i sposa l cost =   dj*λj*qj*βj*φj ≤ maxX
j=1

Where:
maxF = -μ(F ) − Zα *σ (F )
maxC = -μ(C ) − Zα *σ (C )
maxS = -μ(S) − Zα *σ (S)
maxX = μ(X
- ) − Zα *σ (X )
!

/*********************************************
* OPL 12.10.0.0 Model
* Author: Group1
* Creation Date: Dec 14, 2020 at 3:38:36 PM
*********************************************/
int n=...;//Number of product types
range Type=1..n;
float D[Type]=...;//Demand rate of product type Type
float h[Type]=...;//Holding cost of product Type per unit held in time unit.
float P[Type]=...;//Production rate
float c[Type]=...;//Procurement cost
float f[Type]=...;//Space within shipement occupied by each unit of product
Type.
float B[Type]=...;//Percentage of defective products
float uo[Type]=...;//Percentage of scrapt products in B[Type]
float s[Type]=...;//Unit screening cost for product Type
float A[Type]=...;//Fixed replenishment cost per replenishment
float d[Type]=...;//Unit disposal cost for Type(th) scrapt product
float maxF=...;
float maxC=...;
float maxS=...;
float maxX=...;

dvar int q[Type];//Shipment quantity of product

dvar int lam[Type];//number of shipments

execute PRE_SETUP {
cplex.epgap = 0.1;
cplex.tilim = 100;
}

minimize sum (j in Type)((A[j]+c[j]*lam[j]*q[j]) + (s[j]*lam[j]*q[j])+

(d[j]*uo[j]*B[j]*lam[j]*q[j]) + (h[j]*((P[j]-D[j])*(lam[j]*q[j])^2/(2*P[j]^2)+((P[j]-
D[j])*lam[j]*q[j]/P[j]-uo[j]*B[j]*lam[j]*q[j]+(1-uo[j])*B[j]*lam[j]*q[j]))*((1-
B[j])*lam[j]*q[j]/(2*D[j])-lam[j]*q[j]/(2*P[j]))));

subject to{
sum (j in Type) (f[j]*q[j]*(1-B[j])+f[j]*q[j]*B[j]*(1-uo[j])) <= maxF;
!

/*********************************************
* OPL 12.10.0.0 Data
* Author: hello
* Creation Date: Dec 14, 2020 at 3:38:36 PM
*********************************************/
n=2;
D=[3,9];
h=[11,7];
P=[9,11];
c=[2,3];
f=[3,2];
B=[0.1,0.11];
uo=[0.02,0.01];
s=[2,1];
A=[200,100];
d=[44,19];
maxF=68.55;
maxC=185.5;
maxS=14.55;
maxX=55.5;

2. Calculating the optimal total profit (TPOS):

Parameters
n : Number of products
cj : Procurement cost per unit of product j
fj : Space (within 1 shipment) occupied by each unit of product j
βj : Percentage of defective (include bad and imperfect products) products in Qj
ϕj : Percentage of scrapt products in βj
sj : Unit screening cost for product j
maxS : Maximum screening cost for all products (MeanS – Za*STDS)
maxX : Maximum disposal cost for all scrap products (MeanX – Za*STDX)
maxF : Maximum space for all products (MeanF – Za*STDF)
maxC : Maximum procurement cost for all products (MeanC – Za*STDC)
Ij : Unit selling price of imperfect products
!

uj : Unit selling price of good products (uj > Ij)

dj : Unit disposal cost for jth scrap product

Decision variable
qj : Shipment quantity of product j
λj : Number of shipments for product j

Objective-Ma x i mi ze Tot a l P r o f i t (TP ) 

n n
(uj*(1 − βj)*(λj*qj)) + (Ij*(1 − φj)*βj*(λj*qj))
∑ ∑
-=
j=1 j=1

Subject to
n
( fj*qj*λ j *(1 − βj) + fj*λ j*qj**βj*(1 − φj)) ≤ maxF
∑
(1) Tot
- a l Spa ce cost =  
j=1

∑
(2) Tot
- a l P r ocu r emen t cost =   cj*λj*qj ≤ maxC
j=1

∑
(3) Tot
- a l Scr eeni ng cost =   sj*λj*qj ≤ maxS
j=1

∑
(4) Tot
- a l D i sposa l cost =   dj*λj*qj*βj*φj ≤ maxX
j=1

Where:
maxF = -μ(F ) − Zα *σ (F )
maxC = -μ(C ) − Zα *σ (C )
maxS = -μ(S) − Zα *σ (S)
maxX = μ(X
- ) − Zα *σ (X )
!

/*********************************************
* OPL 12.10.0.0 Model
* Author: hello
* Creation Date: Dec 21, 2020 at 2:23:16 PM
*********************************************/
range n=1..2;
float c[n]=...;
float f[n]=...;
float B[n]=...;
float uo[n]=...;
float s[n]=...;
float maxS=...;
float maxX=...;
float maxF=...;
float maxC=...;
float I[n]=...;
float u[n]=...;
float d[n]=...;

dvar int q[n];

dvar int lam[n];

execute PRE_SETUP {
cplex.epgap = 0.1;
cplex.tilim = 100;
}

maximize sum(i in n)((u[i]*(1-B[i])*lam[i]*q[i])+(I[i]*(1-uo[i])*B[i]*lam[i]*q[i]));

subject to{
Constrain_1:
sum (j in n) (f[j]*q[j]*(1-B[j])+f[j]*q[j]*B[j]*(1-uo[j])) <= maxF;
Constrain_2:
sum (j in n) (c[j]*lam[j]*q[j]) <= maxC;
Constrain_3:
sum (j in n) (s[j]*lam[j]*q[j]) <= maxS;
Constrain_4:
sum (j in n) (d[j]*lam[j]*q[j]*B[j]*uo[j])<= maxX;
!

/*********************************************
* OPL 12.10.0.0 Data
* Author: hello
* Creation Date: Dec 21, 2020 at 2:23:16 PM
*********************************************/
c=[2,3];
f=[3,2];
B=[0.1,0.11];
uo=[0.02,0.01];
s=[2,1];
maxF=68.55;
maxC=185.5;
maxS=14.55;
maxX=55.5;
I=[13,15];
u=[16,20];
d=[44,19];

3. CPLEX for main Problem.

Parameters
n : Number of products
Dj : Demand rate of product j
hj : Holding cost of product j per unit held in time unit
Pj : Production rate of product j
cj : Procurement cost per unit of product j
fj : Space (within 1 shipment) occupied by each unit of product j
α : The probability of violating each of the stochastic constraints
βj : Percentage of defective (include bad and imperfect products) products in Qj
ϕj : Percentage of scrapt products in βj
sj : Unit screening cost for product j
Aj : Fixed replenishment cost per replenishment
maxS : Maximum screening cost for all products
maxX : Maximum disposal cost for all scrap products
maxF : Maximum space for all products
maxC : Maximum procurement cost for all products
!

Ij : Unit selling price of imperfect products

uj : Unit selling price of good products (uj > Ij)
dj : Unit disposal cost for jth scrap product
TC : Total inventory costs
TP : Total profits
Z : The critical point of the standard normal value for α
TPOS: The optimal total profit.
TCOS: The optimal total cost.

Decision variable
qj : Shipment quantity of product j
λj : Number of shipments for product j

Objective.

( TCOS )
TC − TCOS TP − TPOS
- n Z =
Mi +( )
TPOS
Subject to:
n
( fj*λ j* qj*(1 − βj) + fj*qj*λ j *βj*(1 − φj)) ≤ maxF
∑
(1) Tot
- a l Spa ce cost =  
j=1

∑
(2) Tot
- a l P r ocu r emen t cost =   cj*λj*qj ≤ maxC
j=1

∑
(3) Tot
- a l Scr eeni ng cost =   sj*λj*qj ≤ maxS
j=1

∑
(4) Tot
- a l D i sposa l cost =   dj*λj*qj*βj*φj ≤ maxX
j=1

Where:
maxF = -μ(F ) − Zα *σ (F )
maxC = -μ(C ) − Zα *σ (C )
maxS = -μ(S) − Zα *σ (S)
maxX = μ(X
- ) − Zα *σ (X )
!

/*********************************************
* OPL 12.10.0.0 Model
* Author: Group1
* Creation Date: Dec 9, 2020 at 11:32:58 AM
*********************************************/
range n=1..2;//Number of product types
float TCOS=...;
float TPOS=...;
float D[n]=...;//Demand rate of product type Type
float h[n]=...;//Holding cost of product Type per unit held in time unit.
float P[n]=...;//Production rate
float c[n]=...;//Procurement cost
float f[n]=...;//Space within shipement occupied by each unit of product Type.
float B[n]=...;//Percentage of defective products
float uo[n]=...;//Percentage of scrapt products in B[Type]
float s[n]=...;//Unit screening cost for product Type
float A[n]=...;//Fixed replenishment cost per replenishment
float I[n]=...;//Unit selling price of imperfect products
float u[n]=...;//Unit selling price of good products
float d[n]=...;//Unit disposal cost for Type(th) scrapt product
float maxS=...;
float maxF=...;
float maxX=...;
float maxC=...;

dvar int q[n];//Shipment quantity of product

dvar int lam[n];//number of shipments

minimize
((sum (j in n)((A[j]+c[j]*lam[j]*q[j]) + (s[j]*lam[j]*q[j])+(d[j]*uo[j]*B[j]*lam[j]*q[j])
+ (h[j]*((P[j]-D[j])*(lam[j]*q[j])^2/(2*P[j]^2)+((P[j]-D[j])*lam[j]*q[j]/P[j]-
uo[j]*B[j]*lam[j]*q[j]+(1-uo[j])*B[j]*lam[j]*q[j]))*((1-B[j])*lam[j]*q[j]/(2*D[j])-
lam[j]*q[j]/(2*P[j]))))-TCOS)/TCOS
+ (sum(i in n)((u[i]*(1-B[i])*lam[i]*q[i])+(I[i]*(1-uo[i])*B[i]*lam[i]*q[i]))-TPOS/
TPOS));

subject to{
!

/*********************************************
* OPL 12.10.0.0 Data
* Author: Group1
* Creation Date: Dec 9, 2020 at 11:32:58 AM
*********************************************/
TCOS=1000;
TPOS=2980;
D=[3,9];
h=[11,7];
P=[9,11];
c=[2,3];
f=[3,2];
B=[0.1,0.11];
uo=[0.02,0.01];
s=[2,1];
A=[200,100];
I=[13,15];
u=[16,20];
d=[44,19];
maxF=68.55;
maxC=185.5;
maxS=14.55;
maxX=55.5;

5. Analyse the result.

These numerical data illustrated with a view to examine the accuracy of the GCD algorithm.
Aim of this paper is to optimize the number of shipments and the quality of shipments while fulfilling
the stochastic constraints.

Sensitivity analysis section focuses on the rate of change of the objective function when the
variables ‘λj’, ‘qj’, ‘cj’ and ‘sj’ parameters are changed. By increasing and decreasing ‘λi’ by ±10, ±30,
±50, ±70 and ±90 percent , plugging in the C-plex program, the results are illustrated in table below:
!

Table 3 and Figure 2 implicate the relationship between the change rate of the objective function and
the change rate of number of shipment with a high correlation coefficient. As shown in figure 2, in the
case of decreasing λj change rate, the change rate of objective function is less sensitive in comparison

with that of the increasing case.
!

- -

Table 4 and Figure 3 shows the change rate between the quantity of products and the objective
function. As illustrated, it follows the result of the change rate of the objective function and the change
rate of number of shipment. However, there are some minor different on the objective function, but
they are negligible.

-
!

On the other hand, Table 5 and Figure 4 shows the correlation between the production cost’s change
rate and that of the objective function. At the specific point of 0.3 change rate of ‘cj’ , the objective
function hits its minimum rate. As illustrated in Figure 4, it can be seen that there is a strong
relationship between the production cost change rate and the objective function change rate, in terms of
both increasing and decreasing. The change rate of objective function is positive, except for cj = 0.3

-
!

Finally, there has been a correlation between the change rate of the unit screening cost and the change
rate of objective function. This relationship is illustrated in Table 6 and Figure 5. As similar to the
previous case, The change rate of an objective function is positive, except for points ±90 percent. It is
noticeable from Figure 5 that there is a direct relationship between the change rate of the unit screening
cost and the change rate of objective function.

The results above implicated that the CGD algorithm is effective in finding the optimal replenishment
quantity of products.

6. Tasks and distributions.

Tasks in group Negative effects Distribution by (%)

!

Huỳnh Ngọc Tú – Define the case None 30%

IELSIU17113
Define problem

Write down model

fomular and explain.

Edit paper report

Write CPLEX code

Leader
Nguyễn Đạt Tấn Phước Summary paper None 30%
– IEIEIU17038
Define the case

Edit report paper

Presentor
T r ị n h G i a P h ú – Analyse the result D e l a y g r o u p ’ s 20%
IELSIU17014 progress.
Make slide
Do not complete the
Presentor tasks in time.
Trịnh Sơn Tùng – Prepare report paper Delay g r o u p ’ s 20%
IELSIU17125 progress
Edit report paper

Prepare the data for

coding

Prepare powerpoint