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Computing nonstationary s, S inventory policies via genetic algorithm
Songklanakarin J. Sci. Technol
unpublished
A periodic-review inventory model with nonstationary stochastic demand under an (s, S) policy is considered. We apply a genetic algorithm to solve for reorder points and order-up-to levels which minimize an expected total cost. A closed-form exact expression for the expected cost is obtained from a nonstationary discrete-time Markov chain. In our numerical experiments, our approach performs very well.
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