Fine-Tuning of Optimisation Parameters in a Firefly Algorithm in Inventory Management

Abstract

The interest in the problems related to optimal inventory management at a scientific level goes back to the start of the 20th century. The inventory is a necessary feature to control and to forecast the level of future demand. Inventory control techniques are very important components and most organizations can substantially reduce their costs. This paper presents the firefly algorithm (FFA) for modelling the inventory control in a production system. The aim of this research is fine-tuning of parameters in FFA in inventory management in order to minimize production cost according to the price of items and inventory keeping cost. The experimental results demonstrate that it is possible to select values of FFA parameters that significantly reduce production cost.