Abstract:
This article discusses of the multi-item inventory problem with backorder using
assignment model as mixed integer linear programming problem with branch-and-
bound method. This model aims to determine optimal policy of inventory problem
by meeting the specified constrains. The mathematical model for this problem
is designed using the LINGO 18.0 application. The solution of the assignment
model is compared with EOQ model with backorder. Based of the comparison of
the two models, it is concluded that the assignment model as mixed integer linear
programming problems are more efficient in minimizing total company’s inventory
costs and can be considered to obtain an optimal inventory policy.
