Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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A Genetic Algorithm for Integrated Inventory and Routing Problems in Two-echelon VMI Supply Chains

2단계 VMI 공급사슬에서 통합 재고/차량경로 문제를 위한 유전알고리듬 해법

  • Park, Yang-Byung (Department of Industrial Engineering, College of Advanced Engineering, Kyung Hee University) ;
  • Park, Hae-Soo (Department of Industrial Engineering, College of Advanced Engineering, Kyung Hee University)
  • 박양병 (경희대학교 테크노공학대학 산업공학과) ;
  • 박해수 (경희대학교 테크노공학대학 산업공학과)
  • Received : 2008.02.22
  • Accepted : 2008.05.06
  • Published : 2008.09.30
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Abstract

Manufacturers, or vendors, and their customers continue to adopt vendor-managed inventory(VMI) program to improve supply chain performance through collaboration achieved by consolidating replenishment responsibility upstream with vendors. In this paper, we construct a mixed integer linear programming model and propose a genetic algorithm for the integrated inventory and routing problems with lost sales maximizing the total profit in the VMI supply chains which comprise of a single manufacturer and multi-retailer. The proposed GA is compared with the mathematical model on the various sized test problems with respect to the solution quality and computation time. As a result, the GA demonstrates the capability of reaching solutions that are very close to those obtained by the mathematical model for small problems and stay within 3.2% from those obtained by the mathematical model for larger problems, with a much shorter computation time. Finally, we investigate the effects of the cost and operation variables on the total profit of the problem as well as the GA performance through the sensitivity analyses.

Keywords

Acknowledgement

Supported by : 한국학술진흥재단

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