A Multi-Objective VMI Model for a Two-Echelon Single Manufacturer Multiple Buyers Supply Chain

A model of a two-level single-producer multi-buyer supply chain (TSPMBSC) is focused on in this article with a single product made by the producer (or vendor) given to the buyers. The operational form of vendor managed inventory (VMI) is utilized by vendors and buyers. We assume the economic production quantity (EPQ) model used by the producer for inventory control with a limited production rate. Sales quantity and sales price are the parameters of each buyer as well as a certain production rate. Two objectives are considered for the model; the first objective is the maximization of channel profit while the second objective is the maximization of the production periods variances whereby the required storage space is minimized. Because of NP-hardness, the weighted sum multi-objective genetic algorithm (WSMOGA), the multi-objective particle swarm optimization algorithm (MOPSO) and the Non-dominated sorting genetic algorithm II (NSGA-II) are the three distinct heuristics embedded for tackling the problem. The instances of the considered problems with small, medium and large sizes are used to compare these heuristics. Considering the metrics of comparison, The MOPSO-based heuristic outperformed the other heuristics.