multi-echelon supply chain inventory planning with demand and leadtime uncertainty
TRANSCRIPT
Int. J. Operational Research, Vol. 5, No. 3, 2009 251
Copyright © 2009 Inderscience Enterprises Ltd.
Multi-echelon Supply Chain Inventory Planning with demand and leadtime uncertainty
Srikanta Routroy* Mechanical Engineering Group, Birla Institute of Technology and Science, Pilani, Rajasthan – 333 031, India Fax: 91-1596-244183 E-mail: [email protected] *Corresponding author
Krishna Chaitanya Maddala Cognizant Technology Solutions, Chennai, India E-mail: [email protected]
Abstract: The paper discusses a generic model for Multi-echelon Supply Chain Inventory Planning (MSCIP) with demand and leadtime uncertanity considering the Total Supply Chain (TSC) cost, which consists of Supply Chain Inventory Capital (SCIC), Supply Chain Ordering/set-up Cost (SCOC) and Supply Chain Stock-out Cost (SCSC) for a Maximum Allowable Supply Chain Inventory (MASCI). The Differential Evolution (DE/best/1/bin) strategy is used to solve MSCIP problem to determine ordering/production quantity and service level that should be maintained by each member of the supply chain. One case situation is elucidated to reinforce the salient features of the concept. A sensitivity analysis is carried out to know how the TSC is varying along MASCI in different environments.
Keywords: differential evolution strategy; supply chain inventory planning.
Reference to this paper should be made as follows: Routroy, S. and Maddala, K.C. (2009) ‘Multi-echelon Supply Chain Inventory Planning with demand and leadtime uncertainty’, Int. J. Operational Research, Vol. 5, No. 3, pp.251–264.
Biographical notes: Srikanta Routroy is working as an Assistant Professor in Mechanical Group, Birla Institute of Technology and Science (BITS), Pilani. His research interests are in the areas of supply chain management, evolutionary computation and manufacturing management. He has published number of papers in various national and international journals. He received PhD from BITS, Pilani, and MTech in Industrial Engineering and Management (IEM) from the Indian Institute of Technology (IIT), Kharagapur.
Krishna Chaitanya Maddala is currently working as Programmer Analyst in Cognizant Technology Solutions, Chennai. He holds an MSc in Chemistry and a BE in Mechanical Engineering from Birla Institute of Technology and Science, Pilani. His current interests are in the areas of software engineering and production engineering.