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. 

Keywords

• stochastic model applications
• genetic algorithm
• nonstationary inventory management