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Asian Journal of Research in Marketing
Year : 2014, Volume : 3, Issue : 3
First page : ( 37) Last page : ( 58)
Online ISSN : 2277-6621.

Optimization of VMI with Multi-Product and Multi-Constraint by Using GA under EPQ

Moghadam M. B.*, Moezi Sarem Deilami**, Saiedy Hesam**, Ghasemi Saeid***, Maleki Vahid****

*Department of Industrial Management, South Tehran Branch, Islamic Azad University, Tehran, Iran

**Young Researchers Club (YRC), Islamic Azad University, Central Tehran Branch, Tehran, Iran

***Department of Industrial Management, Islamic Azad University, Saveh, Iran

****Department of Industrial Engineering, Payame Noor University, Asaluyeh, Iran

Online published on 19 June, 2014.

Abstract

Vendor managed inventory (VMI) is a continuous inventory replenishment that is recognized as the highest level of cooperation in inventory management. VMI provides the benefits of Adjusting for the effect of demand intensification, Cost reduction, service level improvement and long-term profitability growth for member. This research deals with the mathematical issues of a two-echelon vendor-buyer supply chain model under vendor managed inventory (VMI). In this paper, a multi-product economic production quantity problem with limited warehouse-space and capital limitation is considered. Under these conditions, we formulate the problem as a non-linear programming model and propose a genetic algorithm to solve it. At the end, a numerical example is presented to demonstrate the application of the proposed methodology.

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Keywords

Robust, VMI, GA, EPQ, DOE.

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