Using AI Approach to Solve a Deteriorating Inventory Model Considering Multiple JIT Delivery and Price

This paper develops a deteriorating inventory model for the product experiencing continuous decrease in unit price. We proposes an inventory model with efficient replenishment policy for a single supplier-buyer partnership in which the buyer considers JIT through a realization of multiple deliveries considering the buyer's EOQ ordering strategy. The market possesses characters that the selling price exponentially decreases over time until approaching its bottom line, while the customer demand will increases linearly with the selling price down; besides, considering short life cycle, only a single production-setup of the supplier is allowed and the objective of this model is to maximize the supplier's profit during a finite planning horizon and then to derive an optimal product life cycle. A genetic algorithm (GA) is developed to obtain the optimal lifecycle time. Numerical examples are given to validate the analysis of the models