An Evaluation of Inventory System via Evidence Theory for Deteriorating Items under Uncertain Condition and Advanced Payment

Document Type: Article

Authors

1 Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran

2 department of industrial engineering, faculty of engineering, Kharazmi university, Tehran, Iran

3 Department of industrial engineering and management systems, Amirkabir university, Tehran, Iran

Abstract

The inventory model for deteriorating items, which is developed by The Evidential Reasoning Algorithm (ERA) and the imprecise inventory costs, is one of the most important factors in complex systems which plays a vital role in Payment. The ERA is able to strengthen the precision of the model and give the perfect interval-valued utility. In this model, during lead-time and reorder level two different cases can be happened which the mathematical model turns into an imposed nonlinear mixed integer problem with interval objective for each case. Placement of an order, which is overlooked by many researchers till now, is normally connected with the advance payment (AP) in business. Specifying the optimal profit and the optimal number of cycles in the finite time horizon and lot-sizing in each cycle, are our goals so. In order to solve this model, we apply the real-coded genetic algorithm (RCGA) with ranking selection. By the model, we represent some numerical examples and also a sensitivity analysis with the variation of different inventory parameters.

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