A Multi-product Multi-period location-inventory for a supply chain network under inflation and time value of money

In this research, we investigate a supply chain network with multiple producers, retailers and the retailers’ warehouses for seasonal products where the warehouses of retailers have limited capacity. The aim ofthe problem is to find the optimal locations of the producers (vendors) in a specific area among a number of retailers in addition to find the optimal quantity of the products ordered by the retailers from the producers sothat the total supply chain cost becomes minimized. The costs of the proposed supply chain network are calculated under the inflation rate and the discount policies. In order to optimize the problem, a Modified Genetic Algorithm(MGA) is applied. Finally, some numerical examples are generated to illustrate the performance of the provided algorithm.

Keywords:

Location allocation , Inventory-supply chain problem , Mixed integer nonlinear programming , Genetic algorithm , Inflation and time value of money