Optimization of single vendor multi buyer consignment stock supply chains with controllable lead times using Evolutionary Algorithms

摘要

In this article, we develop controllable lead time inventory model for consignment stock of supply chain. The lead time is assumed to be dependent because at the time of contract with the manufacturer, the retailer may intends to reduce the lead-time for which he pay an additional cost. The lead time of consignment stock strategy has been controlled to minimize joint total expected cost and simultaneously optimize other decision variables such as quantity transported, lead time, number of transport operations and delay deliveries under stochastic environment so as to gain the competitive advantage in the business strategy. Numerical examples and sensitivity analysis are presented to illustrate the solution procedure.