An application of Genetic Algorithm and PSO in an inventory model for single deteriorating item with variable demand dependent on marketing strategy and displayed stock level

Document Type: Article

Authors

1 Department of Mathematics, The University of Burdwan, Burdwan-713104, India

2 School of Engineering and Sciences, Tecnológico de Monterrey, Ave. E. Garza Sada 2501 Sur, C.P. 64849, Monterrey, Nuevo León, México

3 Department of Mathematics & Statistics, Banasthali University, Banathali, India

Abstract

This paper deals with an inventory model for single deteriorated item considering the impact of marketing decisions and the displaced stock level on the demand. Partial backlogged shortages are allowed. Analyzing the storage capacity of the shop and demand parameters, different scenarios have been investigated. For each scenario, the corresponding problem has been formulated as a nonlinear mixed integer optimization problem and solved by real coded genetic algorithm and particle swarm optimization technique.  To illustrate the inventory model, a numerical example has been solved and sensitivity analyses have been done numerically to study the effect of changes of different parameters on the optimal policies.

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