VMI benefits in a multi-products two-echelon system with space restrictions under GA approach

This paper deals with the mathematical issues of a two-echelon vendor-buyer supply chain model under vendor managed inventory (VMI). VMI and traditional model of inventory control are compared with mathematical methods by using EOQ model. Criterion for this comparison is total inventory cost in the supply chain. Total costs are determined with respect to two buyers and one supplier in model with the assumption that the supplier faces more products. Results of proposed model of VMI show that in special situations, VMI model acts better than traditional model

Keywords:

Vendor managed inventory , Genetic algorithm , Design of experiments