Optimization research of material inventory management based on genetic algorithm
Xie Yuanmin1
COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(1) 151-155
1 The Key Laboratory for Metallurgical Equipment and Control of the Ministry of Education,
Wuhan University of Science and Technology, Wuhan, 430081, China
Inventory management is an indispensable part in supply chain management. On the one hand the important position it has in the enterprise competitiveness. It has a direct impact on the cost of the products, respond speed to the market, delivery date and other indexes; On the other hand, the inventory system is a dynamic system, which involves huge inventory and wide area. The paper first under the influence of the uncertain factors does certain analysis to the raw material inventory issues, establishes minimum model of raw materials inventory cost in the iron and steel enterprises. Among them, the raw materials inventory cost includes fixed cost, procurement cost and storage cost. By making each purchase amount and raw materials inventory as the decision-making variables, it adopts the corrected genetic algorithm and uses MATLAB to get the optimal solution and get the most optimized raw materials procurement and inventory. The optimization model of raw materials inventory control which presents in this paper mainly applies to iron and steel enterprises of continuous production process, and can also be extended to other types of the enterprises in raw materials inventory control.