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Journal of Applied Mathematics
Volume 2012 (2012), Article ID 648262, 17 pages
http://dx.doi.org/10.1155/2012/648262
Research Article

Optimization on Production-Inventory Problem with Multistage and Varying Demand

1School of Traffic and Transportation, Lanzhou Jiaotong University, Lanzhou 730070, China
2Department of Mathematics, Lanzhou City University, Lanzhou 730070, China
3Northwest Traffic Economy Research Center, Lanzhou Jiaotong University, Lanzhou 730070, China

Received 25 June 2012; Revised 9 October 2012; Accepted 16 October 2012

Academic Editor: Yuri Sotskov

Copyright © 2012 Duan Gang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper addresses production-inventory problem for the manufacturer by explicitly taking into account multistage and varying demand. A nonlinear hybrid integer constrained optimization is modeled to minimize the total cost including setup cost and holding cost in the planning horizon. A genetic algorithm is developed for the problem. A series of computational experiments with different sizes is used to demonstrate the efficiency and universality of the genetic algorithm in terms of the running time and solution quality. At last the combination of crossover probability and mutation probability is tested for all problems and a law is found for large size.