Determination of Optimal Ordering Policy Using Genetic Algorithm for a Multi-stage Serial Supply Chain

Food supply chain is a complex process. The author develops a model that will provide both researchers and practitioners with a means of determining the optimal ordering policy for multi-products in fresh food supply chain. By using computer simulation. this paper conduct for a numerical analysis to the ordering policy of products of a food company in Hubei province to analyze the properties of total cost functions under each of the six different ordering policies and proposes an approximate optimal ordering policy of multiple products. Based on the models and analysis, it is found that agglomeration effect plays an important role in determine ordering policy of multiple products.

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The correct proofs for the optimal ordering policy with trade credit under two different payment methods in a supply chain system

Top ◽

10.1007/s11750-010-0164-6 ◽

2010 ◽

Vol 20 (3) ◽

pp. 768-776 ◽

Cited By ~ 7

Author(s):

Kun-Jen Chung

Keyword(s):

Supply Chain ◽

Trade Credit ◽

Supply Chain System ◽

Chain System ◽

Payment Methods ◽

Ordering Policy ◽

Optimal Ordering Policy ◽

Optimal Ordering

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How Much Can We Spare with E-business: Examining the Effects in Supply Chain Management

10.28945/2756 ◽

2004 ◽

Author(s):

Liljana Ferbar

Keyword(s):

Supply Chain ◽

Supply Chain Management ◽

Chain Management ◽

System Parameters ◽

Business Applications ◽

Ordering Policy ◽

Total Inventory ◽

Level Model ◽

Optimal Ordering Policy ◽

Optimal Ordering

In this paper we concentrate on one aspect of e-business applications, namely on its effects in supply chain management. We derive a mathematical model that shows how different changes in ordering costs as a result of using e-business can affect the optimal ordering intervals and quantity, average stock level and consequently total inventory-related costs. We study the sensitivity of the objective function of the average cost approach to finite magnitude perturbations of some of the system parameters which influence the optimal ordering policy. We deal with the detailed coordination case of two-level model and determine the conditions in which the model is sensitive to the variation of system parameters.

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Optimal Ordering Policy and Coordination Mechanism of a Supply Chain with Controllable Lead-Time-Dependent Demand Forecast

Mathematical Problems in Engineering ◽

10.1155/2011/985104 ◽

2011 ◽

Vol 2011 ◽

pp. 1-24

Author(s):

Hua-Ming Song ◽

Hui Yang ◽

Jian-Qiang Luo

Keyword(s):

Supply Chain ◽

Lead Time ◽

Coordination Mechanism ◽

Optimal Decision ◽

Demand Forecast ◽

Ordering Policy ◽

Controllable Lead Time ◽

Optimal Ordering Policy ◽

Optimal Decision Making ◽

Optimal Ordering

This paper investigates the ordering decisions and coordination mechanism for a distributed short-life-cycle supply chain. The objective is to maximize the whole supply chain's expected profit and meanwhile make the supply chain participants achieve a Pareto improvement. We treat lead time as a controllable variable, thus the demand forecast is dependent on lead time: the shorter lead time, the better forecast. Moreover, optimal decision-making models for lead time and order quantity are formulated and compared in the decentralized and centralized cases. Besides, a three-parameter contract is proposed to coordinate the supply chain and alleviate the double margin in the decentralized scenario. In addition, based on the analysis of the models, we develop an algorithmic procedure to find the optimal ordering decisions. Finally, a numerical example is also presented to illustrate the results.

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