Modeling the Material-Inventory Transportation Problem Using Multi-Objective Optimization

In the era of industry 4.0, procurement in supply chain management is the key to developing information management systems. It directly affects production planning failure. In this case, it is the process to prepare and confirming the material inventory is in the ordinal stages and be able to produce the products in any production line. In terms of industrial informatics, it can provide information management approaches for leveraging data sharing between factories. The multiobjective optimization will be enabled by integrating material inventory, production planning and monitoring, and transportation planning collaboration. The material-inventory transportation problem is the virtual factory situation when production plan failure occurs. It becomes the cost to transport material between each factory and the distribution to clients. In this study, the question of the material-inventory transportation problem is: How can we transport other materials from one factory into another factory? This study proposed a model to find out about the adjustment of material inventory through transportation. The objective of this model is to minimize the whole production cost and total transportation cost.