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Redesigning a Supply Chain Distribution Network: Formulation and Genetic Algorithm-Based Solution Procedure

Author

Listed:
  • Lina Zhou

    (School of Software, Harbin Institute of Technology, Harbin, Heilongjiang, P. R. China)

  • Xiaofei Xu

    (School of Computer Science and Technology, Harbin Institute of Technology, Harbin, Heilongjiang, P. R. China)

  • Shengchun Deng

    (School of Computer Science and Technology, Harbin Institute of Technology, Harbin, Heilongjiang, P. R. China)

  • Xudong Liu

    (School of Computer Science and Technology, Harbin Institute of Technology, Harbin, Heilongjiang, P. R. China)

Abstract

Distribution affects company cost and customer satisfaction. Distribution network design is a strategic concern for nearly all companies, and must be periodically reviewed to ensure fitness to today's rapidly changing business environment. Unlike most of previous research, this paper investigates a highly complicated and realistic distribution network, and develops a multi-objective model to achieve an effective redesign solution. Reconfiguring cost, service differentiation, multiple products, and optional capacity levels are simultaneously considered. A determinant code-based encoding structure is designed to represent the complicated multi-objective optimization problem, and a genetic algorithm (GA)-based procedure is developed as a solution. The paper provides an application example using actual data. Finally, a comparison between the empirical results and those of the Prüfer-based GA demonstrate the efficiency of the proposed GA.

Suggested Citation

  • Lina Zhou & Xiaofei Xu & Shengchun Deng & Xudong Liu, 2015. "Redesigning a Supply Chain Distribution Network: Formulation and Genetic Algorithm-Based Solution Procedure," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 847-876.
  • Handle: RePEc:wsi:ijitdm:v:14:y:2015:i:04:n:s0219622014500369
    DOI: 10.1142/S0219622014500369
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