Genetic Algorithm Application to a Production-Inventory Model of Imperfect Process with Deteriorating Items under Two Dispatching Policies

First-In-First-Out (FIFO) and the Last-In-First-Out (LIFO) are general presumption policies of inventory management. In this paper, the genetic algorithm is applied to solve an imperfect production-inventory problem under two inventory dispatching policies, FIFO and LIFO. Referred to mathematical models presented in (Sung et al.2008) and (Lin and Gong 2007), the cell reference function of Excel 2003 is firstly adopted to setup the corresponding objective functions. Sensitivity analyses with various combinations of parameters are further studies. Obtained results show that when a deteriorating item is produced by an imperfect process, the LIFO policy generally dominates the FIFO. However, there exists a cross point when the deterioration rate alpha under the in-control state is 0.03 and the minimum total cost presents a point of the break-even.