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A genetic algorithm for the two-stage supply chain distribution problem associated with a fixed charge

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  • Jawahar, N.
  • Balaji, A.N.

Abstract

This paper considers a two-stage distribution problem of a supply chain that is associated with a fixed charge. Two kinds of cost are involved in this problem: a continuous cost that linearly increases with the amount transported between a source and a destination, and secondly, a fixed charge, that incurs whenever there exists a transportation of a non-zero quantity between a source and a destination. The objective criterion is the minimisation of the total cost of distribution. A genetic algorithm (GA) that belongs to evolutionary search heuristics is proposed and illustrated. The proposed methodology is evaluated for its solution quality by comparing it with the approximate and lower bound solutions. Thus, the comparison reveals that the GA generates better solution than the approximation method and is capable of providing solution either equal or closer to the lower bound solution of the problem.

Suggested Citation

  • Jawahar, N. & Balaji, A.N., 2009. "A genetic algorithm for the two-stage supply chain distribution problem associated with a fixed charge," European Journal of Operational Research, Elsevier, vol. 194(2), pages 496-537, April.
    • Handle: RePEc:eee:ejores:v:194:y:2009:i:2:p:496-537
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    Cited by:

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    2. Bertazzi, Luca & Maggioni, Francesca, 2018. "A stochastic multi-stage fixed charge transportation problem: Worst-case analysis of the rolling horizon approach," European Journal of Operational Research, Elsevier, vol. 267(2), pages 555-569.
    3. J R Montoya-Torres & A Aponte & P Rosas, 2011. "Applying GRASP to solve the multi-item three-echelon uncapacitated facility location problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(2), pages 397-406, February.
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    5. L. X. Cui, 2016. "Joint optimization of production planning and supplier selection incorporating customer flexibility: an improved genetic approach," Journal of Intelligent Manufacturing, Springer, vol. 27(5), pages 1017-1035, October.
    6. Gbeminiyi John Oyewole & Olufemi Adetunji, 2021. "A Hybrid Algorithm To Solve The Fixed Charge Solid Location And Transportation Problem," Engineering Heritage Journal (GWK), Zibeline International Publishing, vol. 5(1), pages 1-11, March.
    7. Sasan Khalifehzadeh & Mehdi Seifbarghy & Bahman Naderi, 2017. "Solving a fuzzy multi objective model of a production–distribution system using meta-heuristic based approaches," Journal of Intelligent Manufacturing, Springer, vol. 28(1), pages 95-109, January.
    8. Ram Kumar P N, 2013. "On Modeling The Step Fixed-Charge Transportation Problem," Working papers 134, Indian Institute of Management Kozhikode.
    9. Ahmed Mostafa & Kamal Moustafa & Raafat Elshaer, 2023. "Impact of Fixed Cost Increase on the Optimization of Two-Stage Sustainable Supply Chain Networks," Sustainability, MDPI, vol. 15(18), pages 1-15, September.
    10. Hong, Jiangtao & Diabat, Ali & Panicker, Vinay V. & Rajagopalan, Sridharan, 2018. "A two-stage supply chain problem with fixed costs: An ant colony optimization approach," International Journal of Production Economics, Elsevier, vol. 204(C), pages 214-226.
    11. A. N. Balaji & J. Mukund Nilakantan & Izabela Nielsen & N. Jawahar & S. G. Ponnambalam, 2019. "Solving fixed charge transportation problem with truck load constraint using metaheuristics," Annals of Operations Research, Springer, vol. 273(1), pages 207-236, February.
    12. Ovidiu Cosma & Petrică C. Pop & Cosmin Sabo, 2020. "An Efficient Hybrid Genetic Approach for Solving the Two-Stage Supply Chain Network Design Problem with Fixed Costs," Mathematics, MDPI, vol. 8(5), pages 1-20, May.
    13. V. Adlakha & K. Kowalski, 2015. "Fractional Polynomial Bounds for the Fixed Charge Problem," Journal of Optimization Theory and Applications, Springer, vol. 164(3), pages 1026-1038, March.
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    15. Diabat, Ali & Al-Salem, Mohammed, 2015. "An integrated supply chain problem with environmental considerations," International Journal of Production Economics, Elsevier, vol. 164(C), pages 330-338.

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