Optimizing the Joint Replenishment and Channel Coordination Problem under Supply Chain Environment Using a Simple and Effective Differential Evolution Algorithm

Lin Wang, Hui Qu, Shan Liu, Can Chen
2014 Discrete Dynamics in Nature and Society  
This paper presents a useful and practical procurement approach using the joint replenishment and channel coordination (JR-CC) policy in a two-echelon supply chain considering the coordination cost. The objective is to determine a basic replenishment cycle time and the replenishment interval to minimize the total cost of the supply chain. To solve this NP-hard problem, a simple and improved differential evolution algorithm (IDE) is developed. The performance of the IDE is verified by benchmark
more » ... ified by benchmark functions. Moreover, results of comparative numerical example show the effectiveness of the proposed IDE. IDE can be used as a good candidate for the JR-CC model. Results of numerical examples also indicate that the JR-CC policy can result in considerable cost saving, and enhance the efficiency of a supply chain. But not all members in the supply chain can benefit a lot using this policy. Moreover, results of sensitivity analysis show that retailers have more willingness to adopt the JR-CC policy than the manufacturers because of the different cost savings.
doi:10.1155/2014/709856 fatcat:2zdnw2vberezjivrbzjux5y75a