Algorithm Research on Optimizing Ordering and Pricing Policy for Perishable Items

Abstract

In reality, perishable products also contain defective ones before storage due to uncertainties during production process. In order to reduce the loss caused by the defective products, an inspection process is implemented by retailers. In view of the above, a retailer’s deteriorating inventory model with defective items is established in this article. Then GA and PSO are used to figure out the model respectively and the usefulness of the intelligent algorithm is confirmed by comparing the outcomes of the two algorithms.