The research on inventory cost of tool based on life cycle

Tool inventory has a large difference with the traditional static inventory since the tool can be reused by grinding. In this paper, according to the life characteristics of tool, the tool inventory cost model has been built by studying the using process of tool. The model takes all costs which includes the shortage cost in the product life cycle into account under the circumstances of demand uncertainty. The compact genetic algorithm is successfully used in the cost function optimization process. The reasonableness of the tool inventory cost model and the effectiveness of the compact genetic algorithm have been demonstrated by simulation results. c 2014 IEEE.