Integrated Single Supplier And Multiple Retailers On The Supply Chain Optimization Model

For the cost of supply chain, the production, inventory and transportation, all of them need the corresponding cost. As a result, to strengthen the cost of the production, management and transportation in the supply chain are especially important. The main consideration of the previous literature is the combination of production and inventory optimization or joint optimization of inventory and transportation. Article first half is in the background of the random demand considering joint production inventory-transportation optimization problems, second part the article studies the alterative inventory cost of the item. In this paper, the main research work is as follows:(1) Under the stochastic demand, we try to optimize the production-inventory-transportation model with single-vendor and multi-retailer. First, model-building. Comparing the scenario in the centralized decisions with the decentralized decision, the interests of all parties in supply chain is optimal. Each retailer respectively formulate its optimal value of the quantity and time for order. According to each retailer's strategy, the product supplier arrange the product distribution. Under the centralized decision, the supplier is dominant and have the right to decide the delivery time and distribution quantity for each retailer. How to make it optimal is our point. So we establish a model to discuss the integrated production-inventory-transportation with a single supplier and multiple retailers. Second, problem-solving. In order to obtain the optimal distribution quantity, time, path and expected total profit, we use a two-phase algorithm which combines the particle swarm optimization with the simulated annealing algorithm. Third, profit sharing. We design a revenue-sharing contract to share the added profits by the retailers and supplier. Because of the profits increased, this make all parties more willing to cooperate with each other. Last, numerical example. For validating the feasibility and reliability of the model, the solution of the numerical example is given, which presents the advantage of the centralized decisions.(2) Inventory control model about alterative items is established under the condition that the rate of inventory cost change is inventory function, suppose the quantity of alterative linearly dependent on the current inventory level, establish the corresponding mathematical model, discuss the model optimal conditions of the existence and uniqueness of solution, in order to get the optimal order strategy. Finally, a numerical example and the corresponding sensitivity analysis are used to verify the validity of the model and algorithm.