[KSCI] Korea Science Citation Index Service

Solving Robust EOQ Model Using Genetic Algorithm

Lim, Sung-Mook (School of Business Administration, Korea University)

Publication Information

Management Science and Financial Engineering / v.13, no.1, 2007 , pp. 35-53 More about this Journal

Abstract

We consider a(worst-case) robust optimization version of the Economic Order Quantity(EOQ) model. Order setup costs and inventory carrying costs are assumed to have uncertainty in their values, and the uncertainty description of the two parameters is supposed to be given by an ellipsoidal representation. A genetic algorithm combined with Monte Carlo simulation is proposed to approximate the ellipsoidal representation. The objective function of the model under ellipsoidal uncertainty description is derived, and the resulting problem is solved by another genetic algorithm. Computational test results are presented to show the performance of the proposed method.

Keywords

EOQ Model; Uncertainty; Robust Optimization; Genetic Algorithm; Monte Carlo Simulation;

Citations & Related Records

Reference

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