Inventory planning for a multi-echelon supply chain

Inventory planning is the significant operational issue in supply chain management. In this paper, a mathematical model is developed for multi-echelon supply chain inventory planning to determine ordering/production quantity and reorder point while minimising the Total Supply Chain Cost (TSCC) (i.e., supply chain inventory capital, supply chain ordering/set-up cost and supply chain inventory stock out cost). Differential Evolution algorithm is used for multiechelon supply chain inventory planning. One case situation is elucidated in order to reinforce the salient features of the concept. A sensitivity analysis is also carried out to show the effect of input parameters on the TSCC.