Genetic algorithm approach for reorder cycle time determination in multi-stage systems

The objective of this research is to provide a genetic algorithm to determine the reorder cycle time for multi-stage serial and assembly systems. Demand for end item is assumed to occur at a constant and continuous rate. Production is instantaneous and no backorders are allowed. Both setup and echelon holding costs are charged at each stage. The attention is on nested and stationary policies. Furthermore, the reorder interval for each echelon is restricted to be not only integer, but also a power of two times a base planning period. The performance of the genetic algorithm is evaluated in comparison with an optimal approach proposed by Maxwell and Muckstadt ( 1985), obtaining solutions from zero to five percent from the optimum for small problems. Experimentation is conducted to determine the genetic algorithm parameters and in addition to evaluate the robustness of the proposed methodology.