Advertisement

Design of a Retail Chain Stocking Up Policy with a Hybrid Evolutionary Algorithm

  • Anna I. Esparcia-Alcázar
  • Lidia Lluch-Revert
  • Manuel Cardós
  • Ken Sharman
  • Carlos Andrés-Romano
Part of the Lecture Notes in Computer Science book series (LNCS, volume 3906)

Abstract

In this paper we address the joint problem of minimising both the transport and inventory costs of a retail chain that is supplied from a central warehouse. We propose a hybrid evolutionary algorithm where the delivery patterns are evolved for each shop, while the delivery routes are obtained employing the multistart sweep algorithm. The experiments performed show that this method can obtain acceptable results consistently and within a reasonable timescale. The results are also of a lower cost than those obtained by other strategies employed in previous research. Furthermore, they confirm the interest of addressing the optimisation problem jointly, rather than minimising separately inventory and transport.

Keywords

Transportation Cost Travel Salesman Problem Vehicle Rout Problem Inventory Cost Retail Chain 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Benjamin, J.: An Analysis of Inventory and Transportation Costs in a Constrained Network. Transportation Science 23(3), 177–183 (1989)CrossRefGoogle Scholar
  2. 2.
    Burns, L.D., Hall, R.W., Blumenfeld, D.E., Daganzo, C.F.: Distribution Strategies that Minimize Transportation and Inventory Costs. Operations Research 33(3), 469–490 (1985)CrossRefMATHGoogle Scholar
  3. 3.
    Cardós, M., García-Sabater, J.P.: Designing a consumer products retail chain inventory replenishment policy with the consideration of transportation costs. International Journal of Production Economics (in press), doi:10.1016/j.ijpe.2004.12.022Google Scholar
  4. 4.
    Constable, G.K., Whybark, D.C.: The interaction of transportation and inventory decisions. Decision Sciences 9(4), 688–699 (1978)CrossRefGoogle Scholar
  5. 5.
    Ganeshan, R.: Managing supply chain inventories: A multiple retailer, one warehouse, multiple supplier model. International Journal of Production Economics 59(1-3), 341–354 (1999)CrossRefGoogle Scholar
  6. 6.
    Gillet, B.E., Miller, L.R.: A Heuristic Algorthm for the Vehicle Dispatch Problem. Operations Research 22, 340–349 (1974)CrossRefGoogle Scholar
  7. 7.
    Qu, W.W., Bookbinder, J.H., Iyogun, P.: An integrated inventory-transportation system with modified periodic policy for multiple products. European Journal of Operational Research 115(2), 254–269 (1999)CrossRefMATHGoogle Scholar
  8. 8.
    Robusté, F., Daganzo, C.F., Souleyrette, R.: Implementing vehicle routing models. Transportation Research B 24(4), 263–286 (1990)CrossRefGoogle Scholar
  9. 9.
    Speranza, M.G., Ukovich, W.: Minimizing Transportation and Inventory Costs for Several Products on a Single Link. Operations Research 42(5), 879–894 (1994)CrossRefMATHGoogle Scholar
  10. 10.
    Zhao, Q.H., Wang, S.Y., Lai, K.K., Xia, G.P.: Model and algorithm of an inventory problem with the consideration of transportation cost. Computers and Industrial Engineering 46(2), 397–398 (2004)CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Anna I. Esparcia-Alcázar
    • 1
  • Lidia Lluch-Revert
    • 2
  • Manuel Cardós
    • 2
  • Ken Sharman
    • 1
  • Carlos Andrés-Romano
    • 2
  1. 1.Instituto Tecnológico de Informática, Edif. 8G Acc. B, Ciudad Politécnica de la InnovaciónValenciaSpain
  2. 2.Departamento de Organización de Empresas, Econ. Financiera y ContabilidadUniversidad Politécnica de ValenciaValenciaSpain

Personalised recommendations