Title: Multi-echelon Supply Chain Inventory Planning with demand and leadtime uncertainty

Authors: Srikanta Routroy, Krishna Chaitanya Maddala

Addresses: Mechanical Engineering Group, Birla Institute of Technology and Science, Pilani, Rajasthan – 333 031, India. ' Cognizant Technology Solutions, Chennai, India

Abstract: The paper discusses a generic model for Multi-echelon Supply Chain Inventory Planning (MSCIP) with demand and leadtime uncertanity considering the Total Supply Chain (TSC) cost, which consists of Supply Chain Inventory Capital (SCIC), Supply Chain Ordering/set-up Cost (SCOC) and Supply Chain Stock-out Cost (SCSC) for a Maximum Allowable Supply Chain Inventory (MASCI). The Differential Evolution (DE/best/1/bin) strategy is used to solve MSCIP problem to determine ordering/production quantity and service level that should be maintained by each member of the supply chain. One case situation is elucidated to reinforce the salient features of the concept. A sensitivity analysis is carried out to know how the TSC is varying along MASCI in different environments.

Keywords: differential evolution strategy; supply chain inventory; supply chain management; SCM; inventory planning; demand uncertainty; lead time uncertainty.

DOI: 10.1504/IJOR.2009.025195

International Journal of Operational Research, 2009 Vol.5 No.3, pp.251 - 264

Published online: 16 May 2009 *

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