Optimization model for the new coordinated replenishment and delivery problem with multi-warehouse

Rui Liu (School of Management, Huazhong University of Science and Technology, Wuhan, China)
Shan Liu (School of Management, Xi’an Jiaotong University, Xi’an, China)
Yu-Rong Zeng (School of Information Engineering, Hubei University of Economics, Wuhan, China)
Lin Wang (School of Management, Huazhong University of Science and Technology, Wuhan, China)

The International Journal of Logistics Management

ISSN: 0957-4093

Publication date: 8 May 2017

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Keywords

Acknowledgements

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).

Citation

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

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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