Particle swarm optimisation with a constraint-handling technique for seller buyer inventory games
Ching-Shih Tsou, Shih Chia Chang, Chin Hsiung Hsu · International Journal of Business and Systems Research · 2008
Most inventory games are analytics-oriented and lack of a solution procedure such that its application may be retarded. In this paper particle Swarm Optimisation (PSO) is modified to solve a seller?buyer inventory game. A constraint-handling mechanism based on the symbiosis phenomenon in biology makes PSO capable to better explore the constrained search space and, finally, to find the equilibrium that characterises pricing and lot sizing for a seller and a buyer, respectively. Our effort attempts to highlight a workable approach for intractable inventory games that exact methods are impossible to apply.