Replenishment decision support system based on modified particle swarm optimization in a VMI supply chain

Authors

  • Jui-Tsung Wong Shih Chien University Kaohsiung Campus
  • Kuei-Hsien Chen National Yunlin University of Science and Technology
  • Chwen-Tzeng Su National Yunlin University of Science and Technology

DOI:

https://doi.org/10.23055/ijietap.2009.16.1.16

Abstract

This paper proposes a replenishment decision support system, based on response surface methodology (RSM) and modified traveling particle swarm optimization (TPSO). Cross-border cooperation lengthens the distance for transportation and in turn widens the disparity in inventory cost among business partners, thus the accentuated importance of inventory management. Therefore, this paper solves a two-stage stochastic dynamic lot-sizing problem with two-phased transportation cost under a vendor managed inventory. Modified TPSO is proposed to solve a sub-problem, the nonlinear mixed integer programming. In this algorithm, which is executed with a perturbation policy, each move is a feasible solution. RSM is being used to determine the optimal replenishment condition. The result of the experiment indicates that the proposed approach lowers the cost for both the buyer and the vendor. Moreover, the solution quality using modified TPSO was tested and compared with that of the Solver tool in Excel and 3 lot-sizing decision rules.

Author Biographies

Jui-Tsung Wong, Shih Chien University Kaohsiung Campus

Jui-Tsung Wong is presently an assistant professor in the Department of International Business, Shih Chien University Kaohsiung Campus, Taiwan. His main contribution from 2005 to 2008 is his developing the cooperative expert system in the decision support system of the supply chain and in the control system of the manufacturing process. He has published about ten articles in international journals or international conference proceedings during 2005 to 2008, five of which are published in 2007 and 2008. He has published in international journals such as International Journal of Production Research, Expert Systems with Applications, International Journal of Computer Mathematics, Lecture Notes in Artificial Intelligence, and Journal of the Chinese Institute of Industrial Engineers.

Kuei-Hsien Chen, National Yunlin University of Science and Technology

Kuei-Hsien Chen is currently a PhD candidate in the Institute of Industrial Engineering and Management, National Yunlin University of Science and Technology, Taiwan, where she received the MS degree in 2003. Her research interests include artificial intelligence applications.

Chwen-Tzeng Su, National Yunlin University of Science and Technology

Chwen-Tzeng Su is a Full Professor in the Department of Industrial Engineering and Management, National Yunlin University of Science and Technology, Taiwan. He received the PhD degree in industrial engineering from University, of Texas at Arlington, 1989. His research interests include computer-integrated manufacturing, supply chain management, and production and operation management.

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Published

2009-03-31

How to Cite

Wong, J.-T., Chen, K.-H., & Su, C.-T. (2009). Replenishment decision support system based on modified particle swarm optimization in a VMI supply chain. International Journal of Industrial Engineering: Theory, Applications and Practice, 16(1), 1–12. https://doi.org/10.23055/ijietap.2009.16.1.16

Issue

Vol. 16 No. 1 (2009)

Section

Production Planning and Control

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