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A multiproduct EOQ model with permissible delay in payments and shortage within warehouse space constraint: A genetic algorithm approach

Pasandideh, S. H. R ; Sharif University of Technology | 2017

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  1. Type of Document: Article
  2. DOI: 10.1504/IJMOR.2017.10003342
  3. Publisher: Inderscience Enterprises Ltd , 2017
  4. Abstract:
  5. In today's business transactions, sometimes customers are allowed to pay in a grace period, i.e., permissible delay in payment occurs. This policy is advantageous both for the suppliers and for the customers. This paper formulates a multi-product economic order quantity (EOQ) problem with an order-quantity-dependent permissible delay in payment. In this problem, the shortage is backlogged and there is a warehouse constraint. We show that the model of the problem is a constrained nonlinear-integer-program and propose a genetic algorithm (GA) to solve it. Moreover, a statistical approach is employed to calibrate the parameters of the GA. A numerical example is presented at the end to not only demonstrate the application of the proposed parameter-tuned GA, but also to verify the results and to show GA performs better than a simulated annealing (SA) approach. Copyright © 2017 Inderscience Enterprises Ltd
  6. Keywords:
  7. Economic order quantity ; EOQ ; Genetic algorithm ; Permissible delay in payment ; Shortage ; Warehouse constraint
  8. Source: International Journal of Mathematics in Operational Research ; Volume 10, Issue 3 , 2017 , Pages 316-341 ; 17575850 (ISSN)
  9. URL: http://www.inderscience.com/offer.php?id=83188