Article ID: | iaor20131815 |
Volume: | 14 |
Issue: | 3 |
Start Page Number: | 277 |
End Page Number: | 297 |
Publication Date: | Feb 2013 |
Journal: | International Journal of Services and Operations Management |
Authors: | Wong Kuan Yew, Sobhani Farshid |
Keywords: | heuristics: genetic algorithms |
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.