Optimisation of supply chains for single vendor-multibuyer consignment stock policy under controllable lead time using genetic algorithm

Abstract

In this article, we develop a controllable-lead-time inventory model where the lead time is assumed to be dependent because at the time of contract with a manufacturer, the retailer may intend to reduce the lead time, for which he will pay an additional cost to accomplish an increased production rate. The Joint Total Expected Cost (JTEC), and other decision variables such as quantity transported, lead time, number of transport operations and delay deliveries under stochastic environment have been simultaneously optimised so as to gain competitive advantage in the business strategy. Numerical examples and sensitivity analysis are presented to illustrate the solution procedure.