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An application of tournament genetic algorithm in a marketing oriented economic production lot-size model for deteriorating items

Author

Listed:
  • Bhunia, A.K.
  • Kundu, S.
  • Sannigrahi, T.
  • Goyal, S.K.

Abstract

The goal of this research is to discuss an application of tournament genetic algorithm (TGA) for solving an economic production lot-size (EPL) model. In this model, the production rate of the item is finite and it is assumed to be a decision variable. The demand rate is also a deterministic function of selling price and the marketing cost. The selling price per unit item is determined by a mark-up over the unit production cost. The deterioration rate at any instant is a linear increasing/decreasing function of time. Partial backlogging shortages are allowed with a variable rate dependent on the length of the waiting time up to the starting of next production. This model is formulated as a highly non-linear constrained optimization problem. To solve this problem, a TGA with steady-state selection, whole arithmetic crossover and non-uniform mutation has been developed and applied. The model has been illustrated with three numerical examples. Finally, sensitivity analyses have been shown graphically to study the variations of the average profit with respect to the different parameters.

Suggested Citation

  • Bhunia, A.K. & Kundu, S. & Sannigrahi, T. & Goyal, S.K., 2009. "An application of tournament genetic algorithm in a marketing oriented economic production lot-size model for deteriorating items," International Journal of Production Economics, Elsevier, vol. 119(1), pages 112-121, May.
    • Handle: RePEc:eee:proeco:v:119:y:2009:i:1:p:112-121
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    References listed on IDEAS

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    1. Abad, P. L., 2003. "Optimal pricing and lot-sizing under conditions of perishability, finite production and partial backordering and lost sale," European Journal of Operational Research, Elsevier, vol. 144(3), pages 677-685, February.
    2. Goswami, Adrijit & Chaudhuri, K. S., 1992. "Variations of order-level inventory models for deteriorating items," International Journal of Production Economics, Elsevier, vol. 27(2), pages 111-117, May.
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    Cited by:

    1. Roy, Arindam & kar, Samarjit & Maiti, Manoranjan, 2010. "A volume flexible production-policy for randomly deteriorating item with trended demand and shortages," International Journal of Production Economics, Elsevier, vol. 128(1), pages 188-199, November.
    2. Yuan, Fong-Ching, 2020. "Intelligent forecasting of inbound tourist arrivals by social networking analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 558(C).
    3. Hsu, P.H. & Wee, H.M. & Teng, H.M., 2010. "Preservation technology investment for deteriorating inventory," International Journal of Production Economics, Elsevier, vol. 124(2), pages 388-394, April.
    4. Wang, Jian-Cai & Lau, Amy Hing-Ling & Lau, Hon-Shiang, 2012. "Practical and effective contracts for the dominant retailer of a newsvendor product with price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 138(1), pages 46-54.
    5. Glock, Christoph H. & Grosse, Eric H., 2021. "The impact of controllable production rates on the performance of inventory systems: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 288(3), pages 703-720.
    6. Laxminarayan Sahoo & Asoke Kumar Bhunia & Pintu Pal & Shib Sankar Bala, 2023. "Tournament constriction coefficient based particle swarm optimization (TPSO-Co) for engineering design optimization problems," 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. 14(1), pages 87-98, March.
    7. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    8. Pando, Valentín & San-José, Luis A. & García-Laguna, Juan & Sicilia, Joaquín, 2013. "A newsboy problem with an emergency order under a general backorder rate function," Omega, Elsevier, vol. 41(6), pages 1020-1028.
    9. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.

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