Evolutionary Algorithm to Determine Economic Order Quantity for Deteriorating Items Under Trade Credits

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University of the Thai Chamber of Commerce
Date Issued
2007
Resource Type
Text::Conference output::Conference proceedings::Conference paper
Language
English
Abstract
In this study, we develop an evolutionary algorithm to derive an economic order quantity for deteriorating items under trade credits. The evolutionary algorithm is one of the meta-heuristic methods that are not commonly used in inventory research. In this study, the result using the evolutionary algorithm is compared to the result using the classical optimization approach. We have shown that the evolutionary algorithm method does not guarantee optimal solution, but results in a simpler methodology to solve complex problems. Furthermore, we also build a model for solving the problem with Weibull distribution deterioration rate, quantity discounts and trade credits. Finally, numerical examples and sensitivity analysis are done to provide some managerial insight in the problem.
Subject(s)
Journal
Proceedings of the 2nd International Conference on Operations and Supply Chain Management
Conference
The 2nd International Conference on Operations and Supply Chain Management
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public
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This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
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University of the Thai Chamber of Commerce
Bibliographic Citation
Widyadana G.A., H.M. Wee, Bisono I.N. (2007) Evolutionary Algorithm to Determine Economic Order Quantity for Deteriorating Items Under Trade Credits.
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