Genetic algorithm optimisation of a class of inventory control systems

The paper describes a procedure for optimising the performance of an industrially designed inventory control system. This has the three classic control policies utilising sales, inventory and pipeline information to set the order rate so as to achieve a desired balance between capacity, demand and minimum associated stock level. A "rst step in optimisation is the selection of appropriate `benchmarka performance characteristics. Five are considered herein and include inventory recovery to `shocka demands; in-built "ltering capability; robustness to production lead-time variations; robustness to pipeline level information "delity; and systems selectivity. A genetic algorithm for optimising system performance, via these "ve vectors is described. The optimum design parameters are presented for various vector weightings. This leads to a decision support system for the correct setting of the system controls under various operating scenarios. The paper focuses on a single supply chain interface, however the methodology is also applicable to complete supply chains. ( 2000 Elsevier Science B.V. All rights reserved.