Considering discrete delivery ordering and shipment consolidation in a three-echelon supply chain with failure
by Amir Hossein Nobil; Mehdi Seifbarghy; Amir Hosein Afshar Sedigh; Davar Pishva
International Journal of Advanced Operations Management (IJAOM), Vol. 8, No. 4, 2016

Abstract: The aim of this paper is to extend research results published in two recent papers which had investigated single-vendor single-buyer inventory model with lost sales and discrete delivery orders and a model in which a single buyer orders a product from multiple vendors who deliver their products to the buyer as joint shipments. We extend the two models studied in the literature by considering a multi-product three-echelon supply chain including multiple suppliers, single manufacturer and single distributor with discrete delivery orders for raw materials and products. We assume that each product needs a specific raw material provided by the suppliers and the raw materials are delivered in batches to the manufacturer, which produces n products through n types of raw materials, and sends them to the distributor. All the products are manufactured utilising one machine and delivered in batches to the distributor. We also assume that a portion of the batches sent to the distributor by the manufacturer are defective. We have developed two heuristics based on genetic algorithm (GA) and biogeography-based optimisation (BBO) algorithm and our numerical results indicate that the GA-based heuristic slightly outperforms that of the BBO algorithm.

Online publication date: Sun, 14-May-2017

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