Optimization of supply chains for single-vendor–multibuyer consignment stock policy with genetic algorithm

Abstract

In this article, we have developed four consignment stock inventory models of supply chain. The lead time is assumed to be dependent because, at the time of contract with the manufacturer, the retailer may intend to reduce the lead time for which the retailers pay an additional cost. The lead time of consignment stock strategy has been controlled to minimize joint total expected cost and simultaneously optimize other decision variables such as quantity transported, lead time, number of transport operations, and delay deliveries under stochastic environment so as to gain the competitive advantage in the business strategy. Numerical examples and sensitivity analysis are presented to illustrate the solution procedure