Applying genetic algorithms to dampen the impact of price fluctuations in a supply chain

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7 Citations (Scopus)

Abstract

Genetic Algorithms (GAs) have been identified as an innovative and useful approach for dampening the Bullwhip Effect along supply chains. This paper extends previous work by developing an improved supply chain model that incorporates additional cost factors such as ordering cost, item cost, distribution cost and production cost. The revised model is then used to examine one element of the Bullwhip Effect, i.e. price fluctuation strategies. A GA is employed to determine the ordering policy for each member in the model that minimises cost. The research illustrates how the GA performs if a sales promotion is introduced. From the experimental results, it is shown that a GA can help determine an improved ordering policy and reduce the total cost across the supply chain.
LanguageEnglish
Pages5396-5414
JournalInternational Journal of Production Research
Volume50
Issue number19
DOIs
Publication statusPublished - 2012

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Supply chains
Genetic algorithms
Costs
Fluctuations
Genetic algorithm
Supply chain
Sales
Ordering policy
Bullwhip effect

Cite this

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abstract = "Genetic Algorithms (GAs) have been identified as an innovative and useful approach for dampening the Bullwhip Effect along supply chains. This paper extends previous work by developing an improved supply chain model that incorporates additional cost factors such as ordering cost, item cost, distribution cost and production cost. The revised model is then used to examine one element of the Bullwhip Effect, i.e. price fluctuation strategies. A GA is employed to determine the ordering policy for each member in the model that minimises cost. The research illustrates how the GA performs if a sales promotion is introduced. From the experimental results, it is shown that a GA can help determine an improved ordering policy and reduce the total cost across the supply chain.",
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