Model and Algorithm for Production and Distribution Network Planning of a Price-Sensitivity Supply Chain

In a price-sensitivity supply chain (PSSC), there often has nonlinear relationships between products´ price and its quantity. In order to obtain the optimal production and distribution structure of a PSSC, the paper builds an integer nonlinear planning(INLP) model of the network planning for a multi-factories, multi-DCs and multi-retailers supply chain which has price sensitivity characteristics on all of its production , demand and logistic processes, then designs a hybrid genetic algorithm(HGA) to solve the INLP model which is one kind of NP-hard problem, using heuristic rules to repair the illegal chromosomes appearing in the evolutionary process and increase the speed of searching optimal results, finally by doing numerical experiments and comparing the experiments results of HGA with that of SAS/OR, verifies that the HGA has great stability and efficiency to solve the INLP model.