Hybrid algorithm for a vendor managed inventory system in a two-echelon supply chain

Ali Diabat

European Journal of Operational Research, 2014, vol. 238, issue 1, 114-121

Abstract: In this paper we address the issue of vendor managed inventory (VMI) by considering a two-echelon single vendor/multiple buyer supply chain network. We try to find the optimal sales quantity by maximizing profit, given as a nonlinear and non-convex objective function. For such complicated combinatorial optimization problems, exact algorithms and optimization commercial software such as LINGO are inefficient, especially on practical-size problems. In this paper we develop a hybrid genetic/simulated annealing algorithm to deal with this nonlinear problem. Our results demonstrate that the proposed hybrid algorithm outperforms previous methodologies and achieves more robust solutions.

Keywords: Supply chain management; Hybrid algorithms; Genetic algorithms; Simulated annealing; Metaheuristics (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:238:y:2014:i:1:p:114-121

DOI: 10.1016/j.ejor.2014.02.061

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