Title: Optimisation of supply chains for single vendor–multibuyer consignment stock policy under controllable lead time using genetic algorithm
Authors: Ch. Srinivas, C.S.P. Rao
Addresses: Manufacturing Simulation Laboratory, Department of Mechanical Engineering, National Institute of Technology, Warangal, Andhra Pradesh, India. ' Manufacturing Simulation Laboratory, Department of Mechanical Engineering, National Institute of Technology, Warangal, Andhra Pradesh, India
Abstract: In this article, we develop a controllable-lead-time inventory model where the lead time is assumed to be dependent because at the time of contract with a manufacturer, the retailer may intend to reduce the lead time, for which he will pay an additional cost to accomplish an increased production rate. The lead time of Consignment Stock (CS) strategy has been controlled to minimise Joint Total Expected Cost (JTEC), and other decision variables such as quantity transported, lead time, number of transport operations and delay deliveries under stochastic environment have been simultaneously optimised so as to gain competitive advantage in the business strategy. Numerical examples and sensitivity analysis are presented to illustrate the solution procedure.
Keywords: consignment stock; single vendor–multibuyer model; genetic algorithms; supply chain optimisation; supply chain management; SCM; stochastic demand; control lead times; crashing cost; inventory modelling; joint total expected cost.
International Journal of Manufacturing Research, 2007 Vol.2 No.2, pp.243 - 262
Available online: 21 Jul 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article