Optimisation of distribution quantity in a multi-product multi-period supply chain using genetic algorithm Online publication date: Fri, 30-Aug-2013
by Farshid Sobhani; Kuan Yew Wong
International Journal of Services and Operations Management (IJSOM), Vol. 14, No. 3, 2013
Abstract: This research is about optimising the distribution quantity of products in a three-stage supply chain system. The stages consist of manufacturers, distribution centres and retailers. This study also considers the different number of products and time periods in a planning horizon. Optimising the quantity of products shipped through the stages of a supply chain has a significant effect on the total cost of the system and generally, it is a key factor for decision making. The costs studied in this paper are transportation cost and inventory holding cost. Transportation cost itself includes fixed cost and variable cost. A mathematical model was formulated to represent the problem and it was solved by using genetic algorithm. Besides this, a programme was written in a way that can be used with different number of manufacturers, distribution centres, retailers, products and time periods in a planning horizon.
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