To Study, Analysis & Optimization the Inventory Cost by using Genetic Algorithm

Now days it is the biggest challenge for every organization to control inventory cost by using appropriate method. Inventory is the huge capital investment in any organization. If proper care would not been taken, it can result in painful consequences due to both over stocking as well as under stocking. So for maintaining optimum inventory level in the plant one must consider an exact reorder point as well as economic order quantity. Here we proposed a Genetic Algorithm approach to optimize the inventory level in the organization. Genetic Algorithm is able to solve multivariable optimization problem. It can suitably use for job shop production where each job have different variety. Genetic Algorithm approach is very useful tool to find economic order quantity at proper reorder point. Here the optimization of inventory is performed in Bharat Pumps & Compressor Limited Naini, Allahabad by visiting there. In the proposed system we have consider seven raw material from the BPCL plant according to their purchasing cost, holding cost, and ordering cost to find the optimized inventory cost. The proposed system is tested on Microsoft words excel successfully.