Computing nonstationary (s, S) inventory policies via genetic algorithm
A periodic-review inventory model with nonstationary stochastic demand under an (s, S) policy is considered.We apply a genetic algorithm to solve for reorder points and order-up-to levels which minimize an expected total cost.A closed-form exact expression for the expected cost is obtained from a no...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Prince of Songkla University
2013-02-01
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| Series: | Songklanakarin Journal of Science and Technology (SJST) |
| Subjects: | |
| Online Access: | http://do.psu.ac.th/sjstweb/journal/35-1/35-1-115-121.pdf |
| Summary: | A periodic-review inventory model with nonstationary stochastic demand under an (s, S) policy is considered.We apply a genetic algorithm to solve for reorder points and order-up-to levels which minimize an expected total cost.A closed-form exact expression for the expected cost is obtained from a nonstationary discrete-time Markov chain. In ournumerical experiments, our approach performs very well. |
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| ISSN: | 0125-3395 |