AN ECONOMIC ORDER QUANTITY [EOQ] MODEL WITH DEFECTIVE ITEMS AND SHORTAGES

Prepared By Naveen Kumar (O4310402709) Vivek Gupta (06510402709) CSE 2nd Year, Session - 2009-13

WHAT IS EOQ?
EOQ

stands for Economic Order Quantity. model is a technique to find out optimum order quantity generally by considering cost of procurement, inventory holding, and backorder.

EOQ

ASSUMPTIONS OF EOQ MODEL

The

fundamental assumption of an EOQ model is that 100% of items in an ordered lot are perfect. assumption may not be valid for most of the production processes because of process deterioration or other factors.

This

OVERVIEW OF MODEL
This

project develops an EOQ model for that each ordered lot contains some defective items and shortages backordered. is assumed that 100% of each lot contains some defective items which are collection of imperfect quality and scrap items.

It

EXAMPLES OF EOQ MODELS

Rosenblatt Kim

& Lee (1986)

& Hong (1999) & Jaber (2000) Hou (2003) & Salameh (2001)

Salameh Hayek

Chung & Chan

et al. (2003)

IMPLEMENTATION OF MODEL
This

is a mathematical model which is implemented using Genetic Algorithm . coding of model is done in C#.

The

The

interface of model is prepared in .NET framework.

GENETIC ALGORITHM
genetic algorithm is a method for solving optimization problems that is based on1. Natural selection. 2. The process that drives biological evolution.
The

OVERVIEW TO GENETIC ALGORITHM

The

genetic algorithm repeatedly modifies a population of individual solutions. each step, the genetic algorithm selects individuals at random from the current population to be parents and uses them produce the children for the next generation.

At

OPERATORS OF GENETIC ALGORITHM

Selection

Select the parents from initial population based on their fitness value. Combine two parents to form a new child. Apply random changes to a parent to form new child.

Crossover

Mutuation

BEHAVIOR OF MODEL AT INVENTORY LEVEL

Inventory level y [1 - p)x z

z 1 + py py z1
D xA

D Time

-w t1 t2 t3 t

EQUATIONS OPTIMIZED