An efficient method for dynamic-demand joint replenishment problem with multiple suppliers and multiple vehicles. Issue 4 (16th February 2017)

• Record Type: Journal Article
• Authors: Kang, He-Yau; Lee, Amy H.I.; Wu, Chien-Wei; Lee, Cheng-Han
• Is Part Of: International journal of production research. Volume 55:Issue 4(2017)
• Page Start: 1065
• Page End: 1084
• Publication Date: 2017-02-16
• Subjects: dynamic-demand joint replenishment problem (DJRP) -- multiple suppliers -- multiple vehicles -- mixed integer programming (MIP) -- particle swarm optimisation (PSO); Factory management -- Periodicals; 658.57
• DOI: 10.1080/00207543.2016.1218564
• Languages: English
• ISSNs: 0020-7543

Abstract

Abstract : How to improve competitive edges to meet rapidly changing market environment and dynamic customer needs is critical for the survival and success of firms these days. A good supply chain and inventory management is a necessity in the intensive competitive market. This paper considers a dynamic-demand joint replenishment problem with multiple vehicle routing. The problem is first formulated as a mixed integer programming model with an objective to minimise total costs, which include ordering cost, purchase cost, production cost, transportation cost and holding cost, under a prerequisite that inventory shortage is prohibited in the system. A particle swarm optimisation model is proposed next to solve large-scale problems which are computationally difficult. A case study of a touch panel manufacturer is presented to examine the practicality of the models.