Genetic Algorithm for Solving Location Problem in a Supply Chain Network with Inbound and Outbound Product Flows
Abstract: This paper considers
a location problem in a supply chain network. The problem addressed in this
paper is motivated by an initiative to develop an efficient supply chain
network for supporting the agricultural activities. The supply chain network
consists of regions, warehouses, distribution centers, plants, and markets. The
products include a set of inbound products and a set of outbound products. In
this paper, definitions of the inbound and outbound products are seen from the
region’s point of view. The inbound
product is the product demanded by regions and produced by plants which flows
on a sequence of the following entities: plants, distribution centers,
warehouses, and regions. The outbound product is the product demanded by
markets and produced by regions and it flows on a sequence of the following
entities: regions, warehouses, and markets. The problem deals with determining
locations of the warehouses and the distribution centers to be opened and
shipment quantities associated with all links on the network that minimizes the
total cost. The problem can be considered as a strategic supply chain network
problem. A solution approach based on genetic algorithm (GA) is proposed. The
proposed GA is examined using hypothetical instances and its results are compared
to the solution obtained by solving the mixed integer linear programming (MILP)
model. The comparison shows that there is a small gap (0.23%, on average)
between the proposed GA and MILP model in terms of the total cost. The proposed
GA consistently provides solutions with least total cost. In terms of total
cost, based on the experiment, it is demonstrated that coefficients of
variation are closed to 0.
Keywords: Location problem,
supply chain network, mixed integer linear programming model, genetic algorithm
Penulis: Suprayogi, Senator
Nur Bahagia, Yudi Thaddeus
Kode Jurnal: jptindustridd160068
