Robust Optimization for Uncertain Parameter of Economic Order Quantity Model
Zhu Lian-ya · Systems Engineering · 2014
In the present inventory theory the optimal solution is mainly considered under all kinds of circumstances,but the robustness of corresponding solution is seldom considered.To resolve the parameter uncertainty in Economic Order Quantity,this paper develops arobustmethod,which combines Taguchi's method with Kriging metamodel to select a robust optimization solution.The results show that if the decision maker is risk-averse,he will sacrifice total costs of inventory to pursue lower cost variation;if the decision maker is risk preference,he will seek to lower the inventory cost,which,in this case,however,will be followed by the risk of great price fluctuations.