An Integrated Replemishment Model under Dynamic Demand Conditions

He-Yau Kang, Amy H. I. Lee, Chun-Mei Lai

2012

Abstract

This research develops an integrated replenishment model considering supplier selection, procurement lot-sizing, quantity discounts and safety stocks under dynamic demand conditions. The objectives of the model are to minimize total costs, which include ordering cost, purchase cost, transportation cost, shortage cost and holding cost, and to maximize service level of the system over the planning horizon. First, a multi-objective programming (MOP) model is proposed in the paper. Next, the model is transformed into a mixed integer programming (MIP) model based on the -constraint method. Then, the genetic algorithm (GA) model is constructed to solve a large-scale optimization problem by finding a near-optimal solution. An example of a bike manufacturer is used to illustrate the practicality of the proposal model. The results demonstrate that the proposed model is an effective and accurate tool for the integrated replenishment and logistics management.

Paper Citation

in Harvard Style

Kang H., H. I. Lee A. and Lai C. (2012). An Integrated Replemishment Model under Dynamic Demand Conditions . In Proceedings of the 9th International Conference on Informatics in Control, Automation and Robotics - Volume 2: OMDM, (ICINCO 2012) ISBN 978-989-8565-22-8, pages 614-619. DOI: 10.5220/0004030706140619

in Bibtex Style

@conference{omdm12,
author={He-Yau Kang and Amy H. I. Lee and Chun-Mei Lai},
title={An Integrated Replemishment Model under Dynamic Demand Conditions},
booktitle={Proceedings of the 9th International Conference on Informatics in Control, Automation and Robotics - Volume 2: OMDM, (ICINCO 2012)},
year={2012},
pages={614-619},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004030706140619},
isbn={978-989-8565-22-8},
}

in EndNote Style

TY - CONF
JO - Proceedings of the 9th International Conference on Informatics in Control, Automation and Robotics - Volume 2: OMDM, (ICINCO 2012)
TI - An Integrated Replemishment Model under Dynamic Demand Conditions
SN - 978-989-8565-22-8
AU - Kang H.
AU - H. I. Lee A.
AU - Lai C.
PY - 2012
SP - 614
EP - 619
DO - 10.5220/0004030706140619