Solving a Supply Chain Problem Including VMI and Cross-Docking Approaches, with Genetic Algorithm

Abstract

In this paper, for the first time the cross-docking concept is considered in a vendor-managed inventory (VMI)-based supply chain. In this supply chain, and based on the economic order quantity (EOQ) model, a vendor prepares and sends several products to retailers. Then, retailers, based upon customers’ order, send products to the cross-dock to be delivered to the customers. Demands of retailers and customers are deterministic and shortage is acceptable as backorder. Presented mathematical model (of integer nonlinear programming type) seeks to minimize the total cost of the supply chain. Thus, a meta-heuristic algorithm (GA) is used to solve the model. In addition, a number of sample problems are analyzed to evaluate the performance of the solving algorithm. Finally, after the conclusion, some suggestions are provided for future researches.