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Genetic Algorithm to Evaluate Downstream and Upstream Information Sharing

[ Vol. 15 , Issue. 1 ]

Author(s):

Mansour Rached*   Pages 24 - 33 ( 10 )

Abstract:


Background: In this paper, we present an approach to evaluate the information sharing in the supply chain.

Materials and Methods: We propose a study of four scenarios of sharing upstream and downstream information simultaneously. Replenishment lead time is the upstream information studied in this work and demand information is the downstream one. We treat in this context the case of two-echelon (a warehouse and several retailers) and multi-products supply chain.

Results: We focus our approach on the centralised decision, in which, the warehouse is the decision maker and his goal is to minimise the system cost independently. In our formulation, we consider a system cost composed of holding, ordering, penalty and transportation costs. Then, we use a Genetic Algorithm in order to approximate the optimal echelon inventory position at the warehouse and optimal allocation quantity of each item from the warehouse to the respective retailer, which minimises the system cost.

Conclusion: Our approach is illustrated by some numerical experiments.

Keywords:

Information sharing, supply chain, genetic algorithm, downstream information, upstream information, two-echelon.

Affiliation:

College of Computing and Informatics, Saudi Electronic University, Tabuk

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