scholarly journals An Efficient Hybrid Genetic Approach for Solving the Two-Stage Supply Chain Network Design Problem with Fixed Costs

Mathematics ◽  
2020 ◽  
Vol 8 (5) ◽  
pp. 712
Author(s):  
Ovidiu Cosma ◽  
Petrică C. Pop ◽  
Cosmin Sabo

This paper deals with a complex optimization problem, more specifically the two-stage transportation problem with fixed costs. In our investigated transportation problem, we are modeling a distribution network in a two-stage supply chain. The considered two-stage supply chain includes manufacturers, distribution centers, and customers, and its principal feature is that in addition to the variable transportation costs, we have fixed costs for the opening of the distribution centers, as well as associated with the routes. In this paper, we describe a different approach for solving the problem, which is an effective hybrid genetic algorithm. Our proposed hybrid genetic algorithm is constructed to fit the challenges of the investigated supply chain network design problem, and it is achieved by incorporating a linear programming optimization problem within the framework of a genetic algorithm. Our achieved computational results are compared with the existing solution approaches on a set of 150 benchmark instances from the literature and on a set of 50 new randomly generated instances of larger sizes. The outputs proved that we have developed a very competitive approach as compared to the methods that one can find in the literature.

2021 ◽  
Author(s):  
Ovidiu Cosma ◽  
Petrică C Pop ◽  
Cosmin Sabo

Abstract In this paper we investigate a particular two-stage supply chain network design problem with fixed costs. In order to solve this complex optimization problem, we propose an efficient hybrid algorithm, which was obtained by incorporating a linear programming optimization problem within the framework of a genetic algorithm. In addition, we integrated within our proposed algorithm a powerful local search procedure able to perform a fine tuning of the global search. We evaluate our proposed solution approach on a set of large size instances. The achieved computational results prove the efficiency of our hybrid genetic algorithm in providing high-quality solutions within reasonable running-times and its superiority against other existing methods from the literature.


2021 ◽  
Vol 13 (5) ◽  
pp. 2596
Author(s):  
Kanokporn Kungwalsong ◽  
Chen-Yang Cheng ◽  
Chumpol Yuangyai ◽  
Udom Janjarassuk

A supply chain disruption is an unanticipated event that disrupts the flow of materials in a supply chain. Any given supply chain disruption could have a significant negative impact on the entire supply chain. Supply chain network designs usually consider two stage of decision process in a business environment. The first stage deals with strategic levels, such as to determine facility locations and their capacity, while the second stage considers in a tactical level, such as production quantity, delivery routing. Each stage’s decision could affect the other stage’s result, and it could not be determined individual. However, supply chain network designs often fail to account for supply chain disruptions. In this paper, this paper proposed a two-stage stochastic programming model for a four-echelon global supply chain network design problem considering possible disruptions at facilities. A modified simulated annealing (SA) algorithm is developed to determine the strategic decision at the first stage. The comparison of traditional supply chain network decision framework shows that under disruption, the stochastic solutions outperform the traditional one. This study demonstrates the managerial viability of the proposed model in designing a supply chain network in which disruptive events are proactively accounted for.


2017 ◽  
Vol 33 (3) ◽  
pp. 365-371
Author(s):  
PETRICA C. POP ◽  
◽  
COSMIN SABO ◽  
BENJAMIN BIESINGER ◽  
BIN HU ◽  
...  

This article considers the two-stage fixed-charge transportation problem which models an important transportation application in a supply chain, from manufacturers to customers through distribution centers. For solving this optimization problem we describe a hybrid algorithm that combines a steady-state genetic algorithm with a local search procedure. The computational results for an often used collection of benchmark instances show that our proposed hybrid method delivers results that are competitive to those of other state-of-the-art algorithms for solving the two-stage fixed-charge transportation problem.


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