An EPQ model with price discounted promotional demand in an imprecise planning horizon via Genetic Algorithm

An economic production quantity (EPQ) model for a newly launched product is developed in an imprecise planning horizon, i.e., lifetime of the product is fuzzy in nature. At the beginning of each cycle price discount is offered to boost the demand. Demand depends on time and price during the price di...

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Bibliographic Details
Published in:Computers & industrial engineering 2009-08, Vol.57 (1), p.181-187
Main Authors: Pal, Sova, Maiti, Manas Kumar, Maiti, Manoranjan
Format: Article
Language:English
Subjects:
Demand
Economic models
Fuzzy logic
Genetic algorithms
Learning effect
Possibility/necessity measure
Price discount
Production planning
Studies
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Summary:An economic production quantity (EPQ) model for a newly launched product is developed in an imprecise planning horizon, i.e., lifetime of the product is fuzzy in nature. At the beginning of each cycle price discount is offered to boost the demand. Demand depends on time and price during the price discount period. After withdrawal of price discount, demand depends on price only. Here, learning effect on production and set-up cost is incorporated. Models are formulated for both the crisp and fuzzy inventory parameters. Fuzzy models are transferred to deterministic ones following possibility/necessity measure on fuzzy goal and necessity measure on imprecise constraints. Finally optimal decision is made using Genetic Algorithm (GA).
ISSN:0360-8352
1879-0550
DOI:10.1016/j.cie.2008.11.016