Optimal supply chain redesign using genetic algorithm

Abstract

Supply chain redesign involves decisions regarding the timing, amount and location attributes of the investment and disinvestment in facilities, production, purchase of raw materials, sale of products, loans and bonds for raising capital, signing of contracts for material purchase and sales, such that the profit is maximized. In this work, we use genetic algorithm to obtain the supply chain redesign plan while maximizing the profit. Genetic algorithms (GA) are best suited for unconstrained problems and we present a novel formulation of the supply chain redesign problem in an unconstrained fashion. To demonstrate this new and unconstrained formulation, we solve the problem which we previously presented (Naraharisetti et al., 2006), where we developed a novel MILP model for supply chain redesign and solved it using Cplex.