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110004
E-mail: liushuan@ise.neu.edu.cn
Optimal Order Quantity for Deterministic Demand with Piecewise Amount Discount
by Genetic Algorithm
Shu-an Liu, Yang Wen, Qing Wang
Faculty of Information Science and Engineering, Northeastern University, Shenyang, China, 110004
E-mail: liushuan@ise.neu.edu.cn
Abstract: With regards to the features of supply chain components in a sales company, the paper proposes the problem
of allocating the replenishment orders of multiple products in several periods with deterministic demands of downstream
customers. The optimization model aims to minimize the operational costs considering constraints of purchase quantity,
inventory capacity and current capitals, i.e., an Economic Order Quantity optimization model based on the piece-wise
discounts with respect to total purchase amount. To solve the model, a Genetic Algorithm is designed in terms of its
characteristics; the chromosome coding with purchase quantity of periods. A heuristic method is employed to initialize
the evolutionary population; the interchange-oriented crossover and the heuristic mutation are designed based on
single-point or genes segment; and infeasible chromosomes are revised by means of a special repair strategy. The
simulation experiments are implemented with practical data of a sales c
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