A model of stochastic inventory management with intellectual search method

Inventory cost model for sole product is investigated in stochastic environment. The logistics cost consists of holding cost, shortage cost and transportation cost. The stochastic lead-time of goods and stochastic arrival time of ships are simultaneously considered. Combining with the national well-known steel company´s oversea purchasing processing, we firstly propose a mathematical model to formulate this complex problems. The genetic algorithm is applied to solve this problem because of its complexity. The numerical examples are presented to illustrate the validity for solving this model with stochastic uncertainty.