An Evaluation of Inventory System via Evidence Theory for Deteriorating Items under Uncertain Condition and Advanced Payment

Abstract

The inventory model for deteriorating items, which is developed by the Evidential Reasoning Algorithm (ERA) and imprecise inventory costs, is one of the most important factors in complex systems that plays a vital role in payment. The ERA is able to strengthen the precision of the model and give the perfect interval-valued utility. In this model, during lead-time and reorder level two di erent cases can occur in which the mathematical model turns into an imposed nonlinear mixed integer problem with an interval objective for each case. The placement of an order, which has been overlooked by many researchers until now, is normally connected with Advance Payment (AP) in business. Specifying the optimal pro t and the optimal number of cycles in the nite time horizon and lot-sizing in each cycle, are the goals of this paper. In order to solve this model, the Real-Coded Genetic Algorithm (RCGA) with ranking selection is applied. Using the model, some numerical examples are represented and a sensitivity analysis with a variation in di erent inventory parameters.

An economic order quantity model for two deteriorating items with mutually complementary price and time dependent demand

“…Aliyu and Sani [6] investigated a pricing model for deteriorating items under generalised exponentially increasing demand with constant holding cost and constant deterioration rate. Amiri et al [21] developed an inventory model for deteriorating items using Evidence Reasoning Algorithm (ERA) and imprecise inventory costs. The model was used to determine the optimal profit and the number of replenishment cycles together with the order quantity in each cycle.…”

“…where E and F have been defined in Equation (11) for simplicity (21) Proof of optimality To show that the unit profit function T P is concave, we prove that the Hessian matrix for the profit function Equation ( 19) is negative (semi)definite.…”