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Multi-echelon Supply Chain Inventory Planning with demand and leadtime uncertainty

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  • Srikanta Routroy
  • Krishna Chaitanya Maddala

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.

Suggested Citation

  • Srikanta Routroy & Krishna Chaitanya Maddala, 2009. "Multi-echelon Supply Chain Inventory Planning with demand and leadtime uncertainty," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 5(3), pages 251-264.
    • Handle: RePEc:ids:ijores:v:5:y:2009:i:3:p:251-264
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