Genetic Algorithm Model for Multi Product Flexible Supply Chain Inventory Optimization Involving Lead Time

Abstract

Efficient and effective management of inventory throughout the supply chain significantly improves the ultimate service provided to the customer. Efficient inventory management is a complex process which entails the management of the inventory in the whole supply chain. The dynamic nature of the excess stock level and shortage level over all the periods is a serious issue when implementation is considered. In addition, consideration of a factory manufacturing the multiple product leads to very complex inventory management process The complexity of the problem increases when lead times of stocks and raw materials are involved. In this paper, these issues of inventory management have been focused and a novel approach based on Genetic Algorithm has been proposed in which the most probable excess stock level and shortage level required for inventory optimization in the supply chain is distinctively determined so as to achieve minimum total supply chain cost.