Inventory System of Automobile for Stock Dependent Demand & Inflation with Two-Distribution Center Using Genetic Algorithm

Abstract

An inventory model of automobile distribution center has been developed for commodity declines, whose demand depends on inflation-impacting stocks with double storage facilities. Own-distribution center (ODC) has a fixed capacity of  units; Rented-distribution center (RDC) has limitless potential to use genetic algorithms. Here we assume that the cost of holding shares in RDC is higher than that of ODC. Stock shortages are permissible and partially overdue, and it is assumed that stocks will deteriorate over time with variable loss rates using genetic algorithms. Inflation effects were also engaged into account for various costs associated with the inventory system of automobile distribution center using a genetic algorithm. A numerical example is also used to examine the behavior of a model using a genetic algorithm. Cost reduction techniques are used to derive the expression of total costs and other parameters using a genetic algorithm.