Title: Bi-objective optimisation of the joint replenishment problem in a two-echelon supply chain

Authors: Pejman Ahmadi; Seyed Hamid Reza Pasandideh; Leopoldo Eduardo Cárdenas-Barrón; Seyed Taghi Akhavan Niaki

Addresses: Faculty of Mechanical and Industrial Engineering, Islamic Azad University, Qazvin Branch, Qazvin, Iran ' Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran ' Department of Industrial and Systems Engineering, School of Engineering and Sciences, Tecnológico de Monterrey, E. Garza Sada 2501 Sur, C.P., 64849, Monterrey, Nuevo León, Mexico ' Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran

Abstract: In this research, a bi-objective optimisation model for the joint replenishment problem (JRP) of a supply chain comprised of a single supplier and multiple retailers is developed, in which the retailers are assumed to be members of a unique distribution company. The mathematical model minimises the supplier's as well as the retailers' cost subject to some constraints. The constraints are the required storage spaces for any retailer, for any product, and for all the products. The benefit of using the JRP policy is shown based on minimising total cost of supplier and retailers. Since the developed model of the problem is NP-hard, the multi-objective meta-heuristic optimisation algorithm of non-dominated sorting genetic algorithm-II (NSGA-II) is proposed to solve the problem. Besides, since no benchmark is available in the literature to verify and validate the results obtained, a non-dominated ranking genetic algorithm (NRGA) is suggested to solve the problem as well. For further validation, the Pareto fronts are compared to lower and upper bounds obtained using a genetic algorithm employed to solve two single-objective problems separately.

Keywords: supply chain management; joint replenishment problem; JRP; non-dominated sorting genetic algorithm-II; NSGA-II; non-dominated ranking genetic algorithm; NRGA.

DOI: 10.1504/IJSOM.2021.113603

International Journal of Services and Operations Management, 2021 Vol.38 No.3, pp.336 - 359

Received: 16 Oct 2018
Accepted: 21 Mar 2019
Published online: 15 Mar 2021 *

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