Horizontal Cross-Cooperation System Design Based on Two Supply Chain

In order to solve the multiple supply chains design (MSCD) problem with two dimensional cooperation, a across-chain horizontal cooperation model with two supply chains is used in this paper. Through hybrid genetic algorithm and software tools Matlab & Lingo, the MSCD problem with two dimensional across-chain horizontal cooperation can be rationally solve. For illustration, a example test is utilized to show the feasibility of the MSCD. Empirical results show that there exists strong correlation between multiple supply chain optimal design and proportion of items allocation, and that minimal cost of MSCD with horizontal cooperation can be reached. When the vertical cooperation item allocation proportion is 0.8, transportation variable costs have an effect on supply chain system design, but transportation fixed cost do not.