Vendor managed inventory coordination strategy of retailer-led supply chain based on genetic algorithm

Xiangyang Ren, Yanan Guo and X

Abstract

The paper considered coordinating topic of retailer-led supply chain based on vendor managed inventory under elastic demand. Coordination strategy of common replenishment period and identical price discount was put forward by retailer the leader of the Stackelberg game. The paper established the system profit model based on multiple vendors and one retailer, then Genetic Algorithm was applied to optimize the model and the simulation works are carried out finally. The results showed that both party benefit’s Pareto improvement and the superior profits can be realized by coordination strategy.