Title: Optimisation of distribution quantity in a multi-product multi-period supply chain using genetic algorithm

Authors: Farshid Sobhani; Kuan Yew Wong

Addresses: Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, Universiti Teknologi Malaysia, 81310 UTM Skudai, Malaysia ' Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, Universiti Teknologi Malaysia, 81310 UTM Skudai, Malaysia

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.

Keywords: supply chain management; SCM; genetic algorithms; optimisation; distribution quantity; multi-product supply chains; multi-period supply chains; transport costs; inventory holding costs.

DOI: 10.1504/IJSOM.2013.052091

International Journal of Services and Operations Management, 2013 Vol.14 No.3, pp.277 - 297

Published online: 30 Aug 2013 *

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