Multi-objective Analysis of Periodic Review Inventory Problem with Coordinated Replenishment in Two-echelon Supply Chain System through Differential Evolution

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This paper studies a multi-objective analysis of periodic review inventory problem in two-echelon supply chain system. Thereat, three strategies of replenishment are proposed to manage inventory in efficient way while trying to improve the system performance by simultaneously minimizing total cost and loss rate of the supply chain. Associated with the problem, it is apparent that preventing loss rate will increase total cost and vice versa. Then between these conflicting goals, we can examine the profitable situation in which all members in the chain can achieve proportional satisfaction. To concern with the finally formulated problem, we applied multi-objective differential evolution (MODE) after giving the original method a suitable procedure for the resulting problem. Through numerical experiments for a case study, we show that the intimate coordination strategy between manufacturer and retailer become more effective as increase in demand uncertainty.