Echelon Inventory Model with Fuzzy approach and Heuristic Solution for Supply Chain Management

Atef Yekta, Hoda | 2009

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 39551 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Akbari Jokar, Mohammad Reza
  7. Abstract:
  8. This Project describes a new model for Inventory management in Supply Chain (SC), based on Fuzzy Set Theory and Echelon Inventory model. In today’s changing market, managing the Supply chain inventories, especially for the new product becomes more complicated and uncertain than before. This work provides a new approach to model uncertainties involved in supply chain management using fuzzy set theory. For achieving a more realistic model, Echelon Inventory is used as the base of integrated supply chain inventory model. In proposed model, some of input parameters like demand, production parameters, transportation time between inventories, and some of variables like lead times are described as fuzzy numbers. The objective is to minimize the total order cost, holding cost, and back order cost of whole chain subject to the restriction of fulfilling the target fill rate of the finished product and determine the review period and order-up-to level of each inventory of the chain. In this model it is possible to evaluate the input data and make decisions based on pessimistic or optimistic strategies and risk attitude. Since the complexity of non-linear mixed integer model, which is resulted, a genetic algorithm approach is developed to solve the model. The model and algorithm is used to solve a typical case in literature and some examples to illustrate the ability and compatibility of the model and algorithm.
  9. Keywords:
  10. Supply Chain Management (SCM) ; Genetic Algorithm ; Fuzzy Set Theory ; Multi-Echelon Inventory Control ; Periodic Review Inventory Policy

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