A genetic algorithm for the two-stage supply chain distribution problem associated with a fixed charge

This paper considers a two-stage distribution problem of a supply chain that is associated with a fixed charge. Two kinds of cost are involved in this problem: a continuous cost that linearly increases with the amount transported between a source and a destination, and secondly, a fixed charge, that...

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Bibliographic Details
Published in:European journal of operational research 2009-04, Vol.194 (2), p.496-537
Main Authors: Jawahar, N., Balaji, A.N.
Format: Article
Language:English
Subjects:
Applied sciences
Approximation
Comparative analysis
Distribution problem
Exact sciences and technology
Fees & charges
Fixed charge
Fixed charge Distribution problem Supply chain Genetic algorithm Heuristics
Genetic algorithm
Genetic algorithms
Heuristic
Heuristics
Logistics
Operational research and scientific management
Operational research. Management science
Studies
Supply chain
Supply chains
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Summary:This paper considers a two-stage distribution problem of a supply chain that is associated with a fixed charge. Two kinds of cost are involved in this problem: a continuous cost that linearly increases with the amount transported between a source and a destination, and secondly, a fixed charge, that incurs whenever there exists a transportation of a non-zero quantity between a source and a destination. The objective criterion is the minimisation of the total cost of distribution. A genetic algorithm (GA) that belongs to evolutionary search heuristics is proposed and illustrated. The proposed methodology is evaluated for its solution quality by comparing it with the approximate and lower bound solutions. Thus, the comparison reveals that the GA generates better solution than the approximation method and is capable of providing solution either equal or closer to the lower bound solution of the problem.
ISSN:0377-2217
1872-6860
DOI:10.1016/j.ejor.2007.12.005