Application of Genetic Algorithms in Inventory Management

Application  of Genetic Algorithms in Inventory Management


Dania, W.A.P.


Abstract: Inventory cost is a main component of total logistic costs. To achieve the minimum logistic costs, companies need to manage the amount of carrying inventory accurately to minimize the impact of the fluctation of demand. In order to deal with the fluctuation of the demand that creates a mismatch between supply and demand, Genetic Algorithms are applied to define the optimal solution based on periodic review system. Genetic Algorithms as one of the optimization method are chosen because it can handle the problem with highly constrained, multi criteria, multi combinatorial problem and has large solution. There are several steps that need to be accomplished to achieve the objective. First, mathematic model of inventory management which contain of all cost component need to be determined. Second, based on the proposed mathematic model, Genetic Algorithms as the optimization method is developed. Finally, the result of Genetic Algorithms is applied in real case study which is case in one of biscuits companies in Indonesia.



Key words: Inventory management, Periodic review system, Genetic algorithms






Authors´ data: STP, MEng. Dania, W[ike] A[gustin] P[rima]*, *Brawijaya University, Jalan Veteran Malang 65145, Indonesia,


This Publication has to be referred as: Dania, W[ike] A[gustin] P[rima] (2010). Application of Genetic Algorithms in Inventory Management, Chapter xx in DAAAM International Scientific Book 2010, pp. xxx-xxx, WAP. Dania (Ed.), Published by DAAAM International, ISBN 978-3-901509-74-2, ISSN 1726-9687, Vienna, Austria

DOI: 10.2507/daaam.scibook.2010.xx



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