Genetic Algorithm to Solve Multi-Period, Multi-Product, Bi-Echelon Supply Chain Network Design Problem

Author(s):  
R. Dhanalakshmi ◽  
P. Parthiban ◽  
K. Ganesh ◽  
T. Arunkumar

In many multi-stage manufacturing supply chains, transportation related costs are a significant portion of final product costs. It is often crucial for successful decision making approaches in multi-stage manufacturing supply chains to explicitly account for non-linear transportation costs. In this article, we have explored this problem by considering a Two-Stage Production-Transportation (TSPT). A twostage supply chain that faces a deterministic stream of external demands for a single product is considered. A finite supply of raw materials, and finite production at stage one has been assumed. Items are manufactured at stage one and transported to stage two, where the storage capacity of the warehouses is limited. Packaging is completed at stage two (that is, value is added to each item, but no new items are created), and the finished goods inventories are stored which is used to meet the final demand of customers. During each period, the optimized production levels in stage one, as well as transportation levels between stage one and stage two and routing structure from the production plant to warehouses and then to customers, must be determined. The authors consider “different cost structures,” for both manufacturing and transportation. This TSPT model with capacity constraint at both stages is optimized using Genetic Algorithms (GA) and the results obtained are compared with the results of other optimization techniques of complete enumeration, LINDO, and CPLEX.

Author(s):  
R. Dhanalakshmi ◽  
P. Parthiban ◽  
K. Ganesh ◽  
T. Arunkumar

In many multi-stage manufacturing supply chains, transportation related costs are a significant portion of final product costs. It is often crucial for successful decision making approaches in multi-stage manufacturing supply chains to explicitly account for non-linear transportation costs. In this article, we have explored this problem by considering a Two-Stage Production-Transportation (TSPT). A two-stage supply chain that faces a deterministic stream of external demands for a single product is considered. A finite supply of raw materials, and finite production at stage one has been assumed. Items are manufactured at stage one and transported to stage two, where the storage capacity of the warehouses is limited. Packaging is completed at stage two (that is, value is added to each item, but no new items are created), and the finished goods inventories are stored which is used to meet the final demand of customers. During each period, the optimized production levels in stage one, as well as transportation levels between stage one and stage two and routing structure from the production plant to warehouses and then to customers, must be determined. The authors consider “different cost structures,” for both manufacturing and transportation. This TSPT model with capacity constraint at both stages is optimized using Genetic Algorithms (GA) and the results obtained are compared with the results of other optimization techniques of complete enumeration, LINDO, and CPLEX.


Author(s):  
R. Dhanalakshmi ◽  
P. Parthiban ◽  
K. Ganesh ◽  
T. Arunkumar

In many multi-stage manufacturing supply chains, transportation related costs are a significant portion of final product costs. It is often crucial for successful decision making approaches in multi-stage manufacturing supply chains to explicitly account for non-linear transportation costs. In this article, we have explored this problem by considering a Two-Stage Production-Transportation (TSPT). A two-stage supply chain that faces a deterministic stream of external demands for a single product is considered. A finite supply of raw materials, and finite production at stage one has been assumed. Items are manufactured at stage one and transported to stage two, where the storage capacity of the warehouses is limited. Packaging is completed at stage two (that is, value is added to each item, but no new items are created), and the finished goods inventories are stored which is used to meet the final demand of customers. During each period, the optimized production levels in stage one, as well as transportation levels between stage one and stage two and routing structure from the production plant to warehouses and then to customers, must be determined. The authors consider “different cost structures,” for both manufacturing and transportation. This TSPT model with capacity constraint at both stages is optimized using Genetic Algorithms (GA) and the results obtained are compared with the results of other optimization techniques of complete enumeration, LINDO, and CPLEX.


Author(s):  
R. Dhanalakshmi ◽  
P. Parthiban ◽  
K. Ganesh ◽  
T. Arunkumar

In many multi-stage manufacturing supply chains, transportation related costs are a significant portion of final product costs. It is often crucial for successful decision making approaches in multi-stage manufacturing supply chains to explicitly account for non-linear transportation costs. In this article, we have explored this problem by considering a Two-Stage Production-Transportation (TSPT). A two-stage supply chain that faces a deterministic stream of external demands for a single product is considered. A finite supply of raw materials, and finite production at stage one has been assumed. Items are manufactured at stage one and transported to stage two, where the storage capacity of the warehouses is limited. Packaging is completed at stage two (that is, value is added to each item, but no new items are created), and the finished goods inventories are stored which is used to meet the final demand of customers. During each period, the optimized production levels in stage one, as well as transportation levels between stage one and stage two and routing structure from the production plant to warehouses and then to customers, must be determined. The authors consider “different cost structures,” for both manufacturing and transportation. This TSPT model with capacity constraint at both stages is optimized using Genetic Algorithms (GA) and the results obtained are compared with the results of other optimization techniques of complete enumeration, LINDO, and CPLEX.


2021 ◽  
Vol 28 (97) ◽  
pp. 284-318
Author(s):  
Michael C. Jones ◽  
Thomas A. Mazzuchi ◽  
Shahram Sarkani

The Department of Defense (DoD) operates a world-wide supply chain, which in 2017 contained nearly 5 million items collectively valued at over $90 billion. Since at least 1990, designing and operating this supply chain, and adapting it to ever-changing military requirements, are highly complex and tightly coupled problems, which the highest levels of DoD recognize as weaknesses. Military supply chains face a wide range of challenges. Decisions made at the operational and tactical levels of logistics can alter the effectiveness of decisions made at the strategic level. Decisions must be made with incomplete information. As a result, practical solutions must simultaneously incorporate decisions made at all levels as well as take into account the uncertainty faced by the logistician. The design of modern military supply chains, particularly for large networks where many values are not known precisely, is recognized as too complex for many techniques found in the academic literature. Much of the literature in supply chain network design makes simplifying assumptions, such as constant per-unit transportation costs regardless of the size of the shipment, the shipping mode selected, the time available for the delivery, or the route taken. This article avoids these assumptions to provide an approach the practitioner can use when designing and adapting supply chain networks. This research proposes a simulation-based optimization approach to find a near-optimal solution to a large supply chain network design problem of the scale faced by a theater commander, while recognizing the complexity and uncertainty that the practicing military logistician must deal with.


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.


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