IDEAS home Printed from https://ideas.repec.org/a/wly/jnljam/v2012y2012i1n648262.html

Optimization on Production‐Inventory Problem with Multistage and Varying Demand

Author

Listed:
  • Duan Gang
  • Chen Li
  • Li Yin-Zhen
  • Song Jie-Yan
  • Akhtar Tanweer

Abstract

This paper addresses production‐inventory problem for the manufacturer by explicitly taking into account multistage and varying demand. A nonlinear hybrid integer constrained optimization is modeled to minimize the total cost including setup cost and holding cost in the planning horizon. A genetic algorithm is developed for the problem. A series of computational experiments with different sizes is used to demonstrate the efficiency and universality of the genetic algorithm in terms of the running time and solution quality. At last the combination of crossover probability and mutation probability is tested for all problems and a law is found for large size.

Suggested Citation

  • Duan Gang & Chen Li & Li Yin-Zhen & Song Jie-Yan & Akhtar Tanweer, 2012. "Optimization on Production‐Inventory Problem with Multistage and Varying Demand," Journal of Applied Mathematics, John Wiley & Sons, vol. 2012(1).
    • Handle: RePEc:wly:jnljam:v:2012:y:2012:i:1:n:648262
    DOI: 10.1155/2012/648262
    as

    Download full text from publisher

    File URL: https://doi.org/10.1155/2012/648262
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2012/648262?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2002. "The Stochastic Inventory Routing Problem with Direct Deliveries," Transportation Science, INFORMS, vol. 36(1), pages 94-118, February.
    2. Ahmad M. Alshamrani, 2012. "Adaptive Control of a Two‐Item Inventory Model with Unknown Demand Rate Coefficients," Journal of Applied Mathematics, John Wiley & Sons, vol. 2012(1).
    3. Ahmad M. Alshamrani, 2012. "Adaptive Control of a Two-Item Inventory Model with Unknown Demand Rate Coefficients," Journal of Applied Mathematics, Hindawi, vol. 2012, pages 1-16, September.
    4. Huang, Chao-Kuei, 2004. "An optimal policy for a single-vendor single-buyer integrated production-inventory problem with process unreliability consideration," International Journal of Production Economics, Elsevier, vol. 91(1), pages 91-98, September.
    5. Wallace J. Hopp & Xiaowei Xu, 2008. "A Static Approximation for Dynamic Demand Substitution with Applications in a Competitive Market," Operations Research, INFORMS, vol. 56(3), pages 630-645, June.
    6. Tava Lennon Olsen & Rodney P. Parker, 2008. "Inventory Management Under Market Size Dynamics," Management Science, INFORMS, vol. 54(10), pages 1805-1821, October.
    7. Mustafa K. Doğru & Martin I. Reiman & Qiong Wang, 2010. "A Stochastic Programming Based Inventory Policy for Assemble-to-Order Systems with Application to the W Model," Operations Research, INFORMS, vol. 58(4-part-1), pages 849-864, August.
    8. Xiuli Chao & Jia Chen & Shouyang Wang, 2008. "Dynamic inventory management with cash flow constraints," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(8), pages 758-768, December.
    9. Zijm, Henk & Van Houtum, Geert-Jan, 1994. "On multi-stage production/inventory systems under stochastic demand," International Journal of Production Economics, Elsevier, vol. 35(1-3), pages 391-400, June.
    10. L. Aggoun & L. Benkherouf & L. Tadj, 1997. "A hidden Markov model for an inventory system with perishable items," International Journal of Stochastic Analysis, Hindawi, vol. 10, pages 1-8, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yuyu Li & Bo Huang, 2013. "Product Selection and Components Replenishment Model of ATO Manufacturer under Heterogeneous Demand," Journal of Applied Mathematics, John Wiley & Sons, vol. 2013(1).
    2. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    3. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    4. Yiting Xing & Ling Li & Zhuming Bi & Marzena Wilamowska‐Korsak & Li Zhang, 2013. "Operations Research (OR) in Service Industries: A Comprehensive Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(3), pages 300-353, May.
    5. Jiao Wang & Lima Zhao & Arnd Huchzermeier, 2021. "Operations‐Finance Interface in Risk Management: Research Evolution and Opportunities," Production and Operations Management, Production and Operations Management Society, vol. 30(2), pages 355-389, February.
    6. Moon, Ilkyeong & Feng, Xuehao, 2017. "Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 78-97.
    7. Philipp Afèche & Mojtaba Araghi & Opher Baron, 2017. "Customer Acquisition, Retention, and Service Access Quality: Optimal Advertising, Capacity Level, and Capacity Allocation," Manufacturing & Service Operations Management, INFORMS, vol. 19(4), pages 674-691, October.
    8. Yuqian Xu & Lingjiong Zhu & Michael Pinedo, 2020. "Operational Risk Management: A Stochastic Control Framework with Preventive and Corrective Controls," Operations Research, INFORMS, vol. 68(6), pages 1804-1825, November.
    9. Yan, Xiaoming & Chao, Xiuli & Lu, Ye, 2024. "Optimal control policies for dynamic inventory systems with service level dependent demand," European Journal of Operational Research, Elsevier, vol. 314(3), pages 935-949.
    10. Huang, Chao-Kuei & Tsai, Deng-Maw & Wu, Ji-Cheng & Chung, Kun-Jen, 2010. "An integrated vendor-buyer inventory model with order-processing cost reduction and permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 202(2), pages 473-478, April.
    11. Sher, Mikhail M. & Kim, Seung-Lae & Banerjee, Avijit & Paz, Michael T., 2018. "A supply chain coordination mechanism for common items subject to failure in the electronics, defense, and medical industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 164-173.
    12. Peter Francis & Karen Smilowitz & Michal Tzur, 2006. "The Period Vehicle Routing Problem with Service Choice," Transportation Science, INFORMS, vol. 40(4), pages 439-454, November.
    13. M. Ganesh Kumar & R. Uthayakumar, 2019. "A two-echelon integrated inventory model under generalized lead time distribution with variable backordering rate," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(4), pages 552-562, August.
    14. Tien-Yu Lin & Kuo-Lung Hou, 2015. "An imperfect quality economic order quantity with advanced receiving," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 23(2), pages 535-551, July.
    15. Hauck, Zsuzsanna & Rabta, Boualem & Reiner, Gerald, 2023. "Coordinating quality decisions in a two-stage supply chain under buyer dominance," International Journal of Production Economics, Elsevier, vol. 264(C).
    16. Jeffrey W. Ohlmann & Michael J. Fry & Barrett W. Thomas, 2008. "Route Design for Lean Production Systems," Transportation Science, INFORMS, vol. 42(3), pages 352-370, August.
    17. Lijian Lu & Jing‐Sheng Song & Hanqin Zhang, 2015. "Optimal and asymptotically optimal policies for assemble‐to‐order n‐ and W‐systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 62(8), pages 617-645, December.
    18. Deligiannis, Michalis & Liberopoulos, George, 2023. "Dynamic ordering and buyer selection policies when service affects future demand," Omega, Elsevier, vol. 118(C).
    19. Xiaoli Zhang & Guoyi Xiu & Fakhar Shahzad & Yupeng Duan, 2021. "Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts," Sustainability, MDPI, vol. 13(3), pages 1-19, January.
    20. Bertazzi, Luca & Chua, Geoffrey A. & Laganà, Demetrio & Paradiso, Rosario, 2022. "Analysis of effective sets of routes for the split-delivery periodic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 298(2), pages 463-477.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jnljam:v:2012:y:2012:i:1:n:648262. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/4185 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.