Optimizing a Stochastic Warehouse using Particle Swarm Optimization

Particle Swarm Optimization is a population based search strategy based on the idea of the simulation of bird flocks. In this paper we will introduce an application of the PSO to a management problem. The simulated stochastic 2-product-warehouse with the parameters order amount and safety stock is a capital oriented model with the goal to maximize the amount of money. PSO finds better values for order amount and safety stock compared to a partial enumeration of the problem parameters....