Optimization of the Replenishment Strategy for the Supplier Based on Genetic Algorithm

Ke Zhu, Hengshan Wang, Yuanyuan Kong, Sheng Li

Abstract


In the supply chain management, the supplier can reduce its total cost by providing price discounts to restrict the
retailers’ replenishment intervals to multiples of a common replenishment interval. In order to accomplish this
purpose, supplier often determined a price discount that all the retailers can accept. After the cost of the supplier
was further considered, a better price discount was designed, which can meet all the retailers’ requirements to
maximize their benefits. And a new supplier’s minimization problem model based on stackelberg game was
designed also. Then a genetic algorithm is used to solve the supplier’s replenishment model. Experiment results
of the genetic algorithm demonstrated the feasibility and the effectiveness of the strategy.

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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