The purpose of this paper is to investigate a new and practical decision support model of the coordinated replenishment and delivery (CRD) problem with multi-warehouse (M-CRD) to improve the performance of a supply chain. Two algorithms, tabu search-RAND (TS-RAND) and adaptive hybrid different evolution (AHDE) algorithm, are developed and compared as to the performance of each in solving the M-CRD problem.
The proposed M-CRD is more complex and practical than classical CRDs, which are non-deterministic polynomial-time hard problems. According to the structure of the M-CRD, a hybrid algorithm, TS-RAND, and AHDE are designed to solve the M-CRD.
Results of M-CRDs with different scales show that TS-RAND and AHDE are good candidates for handling small-scale M-CRD. TS-RAND can also find satisfactory solutions for large-scale M-CRDs. The total cost (TC) of M-CRD is apparently lower than that of a CRD with a single warehouse. Moreover, the TC is lower for the M-CRD with a larger number of optional warehouses.
The proposed M-CRD is helpful for managers to select the suitable warehouse and to decide the delivery scheduling with a coordinated replenishment policy under complex operations management situations. TS-RAND can be easily used by practitioners because of its robustness, easy implementation, and quick convergence.
Compared with the traditional CRDs with one warehouse, a better policy with lower TC can be obtained by the new M-CRD. Moreover, the proposed TS-RAND is a good candidate for solving the M-CRD.
The authors are grateful for the constructive comments of Professor Benjamin T. Hazen and three referees. This research is partially supported by National Natural Science Foundation of China (Nos: 71371080; 71531009), and Humanities and Social Sciences Foundation of Chinese Ministry of Education (No. 15YJA630095).
Liu, R., Liu, S., Zeng, Y.-R. and Wang, L. (2017), "Optimization model for the new coordinated replenishment and delivery problem with multi-warehouse", The International Journal of Logistics Management, Vol. 28 No. 2, pp. 290-310. https://doi.org/10.1108/IJLM-11-2015-0217
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