Formulation of a stock minimisation algorithm for the management of inbound logistics

A considerable amount of research has been done in logistics and supply chain management, mostly in connection with out-bound logistics. The main concerns are the operation of delivery services, the processing of the orders, and accuracy of delivery. The activities involved are usually related to the material flows and warehouse management. However, the in-bound logistics is an important part of the supply chain management. This paper investigates the connections of the demands of orders, due dates and production schedules, with the purpose of minimising the stocking time. With the help of the proposed Stock Minimisation (SM) model, the overall products stocking cost can be reduced. This leads to the reduction of the raw material keeping cost as the material ordering time is driven more closely towards a due date. In comparison with other popular scheduling techniques, the SM model could save around 70% of the product stocking time in simulations.Department of Industrial and Systems Engineerin