Heuristic-based neural networks for stochastic dynamic lot sizing problem

Authors:
Ercan ŞEnyiğIt;Muharrem DüğEnci;Mehmet E. Aydin;Mithat Zeydan
Affiliations:
Erciyes University, Dept. of Industrial Engineering, Kayseri, Turkey;Karabük University, Dept. of Industrial Engineering, Karabük, Turkey;University of Bedfordshire, Dept. of Computer Science and Technology, UK;Erciyes University, Dept. of Industrial Engineering, Kayseri, Turkey
Venue:
Applied Soft Computing
Year:
2013

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Abstract

Multi-period single-item lot sizing problem under stochastic environment has been tackled by few researchers and remains in need of further studies. It is mathematically intractable due to its complex structure. In this paper, an optimum lot-sizing policy based on minimum total relevant cost under price and demand uncertainties was studied by using various artificial neural networks trained with heuristic-based learning approaches; genetic algorithm (GA) and bee algorithm (BA). These combined approaches have been examined with three domain-specific costing heuristics comprising revised silver meal (RSM), revised least unit cost (RLUC), cost benefit (CB). It is concluded that the feed-forward neural network (FF-NN) model trained with BA outperforms the other models with better prediction results. In addition, RLUC is found the best operating domain-specific heuristic to calculate the total cost incurring of the lot-sizing problem. Hence, the best paired heuristics to help decision makers are suggested as RLUC and FF-NN trained with BA.