Genetic model for supply chain inventory optimisation

Abstract

Inventory management is known to be an important aspect in supply chain models. The methodologies used in inventory optimisation intend to reduce the cost of supply chain by controlling the inventory in a desired manner, so that the members of supply chain will not be affected by abundance or shortage of stock. In this paper, an efficient approach based on genetic algorithm (GA) is proposed in order to reduce the total cost of supply chain. A numerical example is used to explain the new approach. The results show that the proposed approach gains an insight into the supply chain models and is applicable for reducing overall supply chain cost.