Applying Genetic Algorithms for Inventory Lot-Sizing Problem with Supplier Selection under Storage Capacity Constraints
The objective of this research is to calculate the optimal inventory lot-sizing for each supplier and minimize the total inventory cost which includes joint purchase cost of the products, transaction cost for the suppliers, and holding cost for remaining inventory. Genetic algorithms are applied to the multi-product and multi-period inventory lot-sizing problems with supplier selection under storage capacity. Also a maximum storage capacity for the decision maker in each period is considered. The decision maker needs to determine what products to order in what quantities with which suppliers in which periods. It is assumed that demand of multiple products is known over a planning horizon. The problem is formulated as a mixed integer programming and is solved with the Genetic algorithms. The detailed computation results are presented.
Keywords: Genetic Algorithms, Supplier selection, Storage capacity,
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ABOUT THE AUTHORS
Chirawat Woarawichai
Kritsana Kuruvit
Paitoon Vashirawongpinyo
Chirawat Woarawichai
Kritsana Kuruvit
Paitoon Vashirawongpinyo
