A new pricing constrained single-product inventory-production model in perishable food for maximizing the total profit
In this paper, a new constrained single-product pricing and inventory model is presented. The goal of the proposed model is to decide on the prices as well as on the inventory and production decisions in order to maximize the total profit. The developed model is a nonlinear programming model which is solved by using hybrid genetic algorithm (HGA) and simulated annealing. Comparison of results obtained from the two algorithms shows that HGA is better. To enhance the performance of our algorithms, we apply the Taguchi experimental design method to tune their parameters. Finally, some recommendations for future developments are presented.
pricing inventory-production model genetic algorithm simulated annealing taguchi experimental design