Abstract:
This paper, considers the supplier selection in three echelon supply chain with Vendor Managed Inventory (VMI) strategy under price dependent demand condition. As there is a lack of study on the supplier selection in VMI literature, this paper presents a VMI model in supply chain including multi supplier, one distributer and multi retailer that distributer selects suppliers. Two class models (traditional vs. VMI) are presented and we compare them to study the impact of VMI on supply chain and supplier selection. As the proposed model is a NP-hard problem, a meta-heuristics namely Harmony Search is employed to optimize the proposed models. We show that how the VMI system can effect on supplier selection and can change the set of selected suppliers. The implications and suggestions for further research are given.
Machine summary:
"It seems that the study of supplier selection has been underexplored following the literature on, this paper presents a VMI model in supply chain including multi-supplier, one distributer and multi-retailer that distributer selects suppliers.
Supplier selection in VMI faces complicated and interesting functional models and algorithms in attempting to maximize the profit of the supply chain and satisfy some conditions.
Nachiappan and Jawahar (2007) worked on two-echelon one-supplier multi-retailer supply chain with VMI strategy and found that conjoint pricing and optimal ordering in VMI is NP-hard problem; therefore, they used Genetic Algorithm to solve it.
Goal programming (Jadidi, Cavalieri & Zolfaghari, 2015), linear and non-linear programming (Amin, Razmi & Zhang, 2011); (Ware, Singh & Banwet, 2014) and dynamic programming (Mafakheri, Breton & Ghoniem, 2011) are proposed methods to solve this kind of problems.
C. Yang, Wee, Pai & Tseng, 2011) are some researchers who applied the model to this method in supplier selection.
Other algorithms like particle swarm optimization (Taleizadeh, Niaki, Shafii, Meibodi, & Jabbarzadeh, 2010), ant colony optimization (Silva, Sousa, Runkler, & Sá da Costa, 2009), Genetic Algorithm (Naso, Surico, Turchiano, & Kaymak, 2007), and simulated annealing (Lim & Zhu, 2006) are also being employed to solve complex supply chain problems.
Optimizing a vendor managed inventory (VMI) model considering delivering cost in a three-echelon supply chain using two tuned-parameter meta-heuristics.
Stackelberg game-theoretic model for optimizing advertising, pricing and inventory policies in vendor managed inventory (VMI) production supply chains."