Partial chain based GA for joint inventory and delivery scheduling with vehicle rent way

Abstract

A partial chain based Genetic Algorithm (PCGA) is developed to solve the integrated inventory and delivery scheduling in a distribution network where multiproducts at one supplier are distributed to several retailers. The shipments of products to the retailers are subcontracted to professional transportation enterprises via vehicle-rent way. Distinguished from many other distribution models, the amount of vehicles is viewed upon as an operational decision simultaneously with the delivery schedule in the planning horizon so as to cater for quick changes in market demand. The jointly inventory and delivery scheduling problem addressed tries to determine not only the schedule of delivery, but also the number of vehicles required towards minimum total costs of inventory, transportation and rental costs in vehicles over the planning horizon. An example is introduced to test the efficiency of the method and sensitivity analysis is conducted also in the paper.