Article ID: | iaor20021640 |
Country: | Netherlands |
Volume: | 134 |
Issue: | 1 |
Start Page Number: | 165 |
End Page Number: | 178 |
Publication Date: | Oct 2001 |
Journal: | European Journal of Operational Research |
Authors: | Paparrizos Konstantinos, Alexouda Georgia |
Keywords: | marketing, heuristics |
In this paper we deal with the product line design problem employing the seller's marginal return criterion. Because this problem is NP-Hard, many researchers proposed heuristic methods. We present a genetic algorithm (GA) based heuristic for solving the above problem. In the implementation, the GA is initialized in two different ways. In the first way, the GA is initialized with a random population. We call this algorithm GA1. In the second way, the solution of the beam search (BS) method is included in the first population of the GA. We call this algorithm GA2. We compare GA1, a recently developed BS method and GA2 on randomly generated problems. GA1 seems to be substantially better than the BS method in terms of CPU time. Also, the solutions found by GA1 are substantially better than those found by the BS method in comparable times. In many cases, GA2 improves the solution found by the BS method. Consequently, it is a good second step of the BS method.