A Genetic Algorithm for Directed Graph-based Supply Network Planning in Memory Module Industry

Abstract

A memory module industry's supply chain usually consists of multiple manufacturing sites and multiple distribution centers. In order to fulfill the variety of demands from downstream customers, production planners need not only to decide the order allocation among multiple manufacturing sites but also to consider memory module industrial characteristics and supply chain constraints, such as multiple material substitution relationships, capacity, and transportation lead time, fluctuation of component purchasing prices and available supply quantities of critical materials (e.g., DRAM, chip), based on human experience. In this research, a directed graph-based supply network planning (DGSNP) model is developed for memory module industry. In addition to multi-site order allocation, the DGSNP model explicitly considers production planning for each manufacturing site, and purchasing planning from each supplier. First, the research formulates the supply network's structure and constraints in a directed-graph form. Then, a proposed genetic algorithm (GA) solves the matrix form which is transformed from the directed-graph model. Finally, the final matrix, with a calculated maximum profit, can be transformed back to a directed-graph based supply network plan as a reference for planners. The results of the illustrative experiments show that the DGSNP model, compared to current memory module industry practices, determines a convincing supply network planning solution, as measured by total profit.