Genetic Algorithm Parameters in a Vendor Managed Inventory Model

Cahyono Sigit Pramudyo

Abstract


To handle the information exchange problem between a vendor and a retailer, Vendor Managed Inventory (VMI) provides a good approach to handle the problem. Information exchanges between both sides enhance supply chain performance. In a previous research work, a stochastic model for one vendor and one retailer has been developed. Simulation optimization using genetic algorithm (GA) has been use to solve the problem. There are 2 important parameters in genetic algorithm (probability of mutation and probability of crossover). This research aims at analyzing relations between GA parameters and optimal solutions. This research compares many combinations of GA parameters and the effects on optimal solutions and time to reach the optimal solutions. This research concludes that the best combination reaches the optimal solutions. Unfortunately, the best combination is only suitable for a certain condition and increasing/reducing GA parameters values do not automatically improve the optimal solutions.


Keywords


Inventory, optimization

Full Text:

PDF

References


M. Waller, M. E. Johnson and T. Davis, "Vendor-Managed Inventory In The Retailer Supply Chain," Journal of Business Logistics, vol. 20, no. 1, pp. 183-203, 1999.

Y. Dong and K. Xu, "A supply chain model of vendor managed inventory," Transportation Research Part E, vol. 38, pp. 75 - 95, 2002.

Y. Yao, P. T. Evers and M. Dresner, "Supply chain integration in vendor-managed inventory," Decision Support Systems, vol. 43, p. 663– 674, 2007a.

P. v. d. Vlist, R. Kuik and B. Verheijen, "Note on supply chain integration in vendor-managed inventory," Decision Support Systems, vol. 44, p. 360–365, 2007.

Y. Yao, P. Evers and M. Dresner, "Response to “Note on supply chain integration in vendor managed inventory”," Decision Support Systems, vol. 44, pp. 366-367, 2007b.

S. H. R. Pasandideh, S. T. A. Niaki and A. R. Nia, "A genetic algorithm for vendor managed inventory control system of multi-product multi-constraint economic order quantity model," Expert Systems with Applications, vol. 38, pp. 2708-2716, 2011.

M. A. Hariga and A. Al-Ahmari, "An integrated retail space allocation and lot sizing models under vendor managed inventory and consignment stock arrangements," Computers & Industrial Engineering, vol. 64, pp. 45-55, 2013.

A. R. Nia, M. H. Far and S. T. A. Niaki, "A hybrid genetic and imperialist competitive algorithm for green vendor managed inventory of multi-item multi-constraint EOQ model under shortage," Applied Soft Computing, vol. 30, pp. 353-364, 2015.

E. Kim, "Stochastic vendor managed replenishment with demand dependent shipment," European Journal of Operational Research, vol. 152, pp. 723-744, 2004.

C. Wang, "Random yield and uncertain demand in decentralised supply chains under the traditional and VMI arrangements," International Journal of Production Research, vol. 47, p. 1955–1968, 2009.

K. Xu and M. T. Leung, "Stocking policy in a two-party vendor managed channel with space restrictions," International Journal of Production Economics, vol. 117, pp. 271-285, 2009.

G. P. Kiesmuller and R. Broekmeulen, "The benefit of VMI strategies in a stochastic multi-product serial two echelon system," Computers & Operations Research, pp. 406-416, 2010.

J. Y. Lee and L. Ren, "Vendor-managed inventory in a global environment with exchange rate uncertainty," International Journal of Production Economics, vol. 130, pp. 169-174, 2011.

X. Lu, J. Shang, S. Wu, G. G. Hegde, L. Vargas and D. Zhao, "Impacts of supplier hubris on inventory decisions and green manufacturing endeavors," European Journal of Operational Research, vol. 245, pp. 121-132, 2015.

J. Y. Lee and R. K. Cho, "Contracting for vendor-managed inventory with consignment stock and stockout-cost sharing," International Journal of Production Economics, vol. 151, pp. 158-173, 2014.

C. S. Pramudyo and H. T. Luong, "One vendor-one retailer in vendor managed inventory problem with stochastic demand," International Journal of Industrial and Systems Engineering, vol. 27, no. 1, pp. 90-106, 2017.

P. Pongcharoen, C. Hicks, P. Braiden and D. Stewardson, "Determining optimum Genetic Algorithm parameters for scheduling the manufacturing and assembly of complex products," Int. J. Production Economics, vol. 78, pp. 311-322, 2002.

J.-T. Wong, K.-H. Chen and C.-T. Su, "Replenishment Decision Support System Based on Modified Particle Swarm Optimization in a VMI Supply Chain Model," International Journal of Industrial Engineering, vol. 16, no. 1, pp. 1-12, 2009.




DOI: http://dx.doi.org/10.14421/ijid.2018.07108

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 IJID (International Journal on Informatics for Development)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

 

ISSN: 2252-7834 (print) | 2549-7448 (online)

International Journal on Informatics for Development

Office : Informatics Dept. Faculty of Science and Technology,

State Islamic University (UIN) Sunan Kalijaga,

Yogyakarta-Indonesia

Marsda Adisucipto Street, Yogyakarta

Phone +62-274 519739 Fax. +62-274 540971

Email : ijid@uin-suka.ac.id

Creative Commons License

All publications

by International Journal on Informatics for Development are licensed under a

Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License