Applied real-valued genetic algorithm for an extended model of economic lot, purchase and delivery scheduling problem

Abstract

Abstract Supply chain management intends to integrate supply chains' activities such as material flow, information flow and financial issues. Material flow management is the most significant issue since the inventory level in the whole supply chain could be optimized by an integrated plan. In other words, when one member of the supply chain plans to reduce its inventory level solely, despite reducing inventory in this node the inventory will be stocked in other partners' warehouses. Therefore, in this paper a new mathematical model has been developed to facilitate the process of finding the optimum solution in economic production, purchase and delivery lots and their schedules in a three-echelon supply chain environment; including raw material in suppliers, manufacturer and assembly facility as a customer. The manufacturer with a flow shop system provides its requirements from supplier, assemble multiple products, and delivers products to the customer (automotive OEM alike) on an optimum multiple delivery points. The delivery cycles would be identified through the production common cycle regarding the supply chain flexibility. Finally, a modified real-valued Genetic Algorithm (MRGA), and an Optimal Enumeration Method (OEM) are developed, and some numerical experiments have been done and compared as well.