A genetic Algorithm method for the inventory routing and optimal pricing in a two-echelon supply chain with demand function

Mohadeseh Nadershahi , Neemat

Abstract

This paper deals with the operational issues of a two-echelon supply chain under linear demand function for each buyer. The operational parameters to the model are sales price and transportation quantity that determine the channel cost of the supply chain transportation. To find out the optimal price and the optimal transportation quantity, for each buyer from several suppliers, a mathematical model is formulated. For using the genetic algorithm, the formulated model is modified and then the best value of the parameters is derived. Finally, a numerical example is given to illustrate the model.