A Genetic Approach for Setting Parameters of Reorder Point Systems

In this paper, we consider the packing storage management problems for an Italian machine-manufacturing company. Because of the limitations of a material requirements planning approach for this particular firm, the packing purchase process is managed by adopting the economic order quantity (EOQ) philosophy. Considering the number of packing types and the constraints that concern the purchase phase, a genetic algorithm approach is proposed to calculate the EOQ and reorder point values for each product. The validity of this approach was tested using a deterministic simulation based on historical data relevant to the packing consumption. This methodology has proved to be very efficient, simple and useful in practice for the definition of good packing inventory management.