Original Article |
2013, Vol.35, No.1, pp. 115-121
Computing nonstationary (s, S) inventory policies via genetic algorithm
Kannapha Amaruchkul
pp. 115 - 121
Abstract
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 our numerical experiments, our approach performs very well.