Optimization of the Inflationary Inventory Control Model under Stochastic Conditions with Simpson Approximation: Particle Swarm Optimization Approach

Document Type : Review article

Authors

1 Faculty of Industrial Engineering, Islamic Azad University, Science and Research Branch, Saveh, Iran

2 Faculty of Industrial Engineering, Kharazmi University, Tehran, Iran

3 Faculty of Industrial Engineering, Islamic Azad University, Karaj Branch, Iran

4 Department of Information Technology of Sufi Razi, Zanjan, Iran

Abstract

In this study, we considered an inflationary inventory control model under non-deterministic conditions. We assumed the inflation rate as a normal distribution, with any arbitrary probability density function (pdf). The objective function was to minimize the total discount cost of the inventory system. We used two methods to solve this problem. One was the classic numerical approach which turned out to be prohibitively difficult. The other was a proposed combination method which used Simpson approximation and particle swarm optimization (PSO). To illustrate the theoretical results, we have provided numerical examples.

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References

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 8, Issue 2 - Serial Number 2
April
April 2015
Pages 203-220

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