A solution procedure for integrated supply chain planning problem in open business environment using genetic algorithm

Abstract

Enterprise applications are increasingly becoming capable of sharing information and coordinating decisions autonomously without any human intervention. This open business environment gives rise to several new supply chain planning problems that have to be solved by individual entities of a supply chain. This paper first mathematically formulates the supply chain planning problems emerging in the open business environment and second proposes a heuristic solution procedure based on the framework of genetic algorithm applicable to large-scale problems. The procedure has two stages as the original problem is decomposed into two sub-problems in an effort to reduce the overall problem complexity. The performance of the proposed algorithm is empirically proven to be effective in both solution quality and search time in various problem sizes.