Using AI approach to solve a production-inventory model with a random product life cycle under inflation

Abstract

This paper considers a production-inventory system with inflation and a random life cycle. Two conditions are discussed: the first is when the product life cycle ends in the production stage and the second is when the product life cycle ends in the non-production stage. We develop a genetic algorithm to find the optimal period time and the lowest expected total cost. Numerical examples and sensitivity analyses are given to validate the results of the production model. © Springer-Verlag Berlin Heidelberg 2007.