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Discrete Dynamics in Nature and Society
Volume 2014 (2014), Article ID 709856, 12 pages
http://dx.doi.org/10.1155/2014/709856
Research Article

Optimizing the Joint Replenishment and Channel Coordination Problem under Supply Chain Environment Using a Simple and Effective Differential Evolution Algorithm

1School of Management, Huazhong University of Science & Technology, Wuhan 430074, China
2Economics and Management School, Wuhan University, Wuhan 430072, China

Received 12 April 2014; Revised 11 May 2014; Accepted 17 May 2014; Published 17 June 2014

Academic Editor: Stefan Balint

Copyright © 2014 Lin Wang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper presents a useful and practical procurement approach using the joint replenishment and channel coordination (JR-CC) policy in a two-echelon supply chain considering the coordination cost. The objective is to determine a basic replenishment cycle time and the replenishment interval to minimize the total cost of the supply chain. To solve this NP-hard problem, a simple and improved differential evolution algorithm (IDE) is developed. The performance of the IDE is verified by benchmark functions. Moreover, results of comparative numerical example show the effectiveness of the proposed IDE. IDE can be used as a good candidate for the JR-CC model. Results of numerical examples also indicate that the JR-CC policy can result in considerable cost saving, and enhance the efficiency of a supply chain. But not all members in the supply chain can benefit a lot using this policy. Moreover, results of sensitivity analysis show that retailers have more willingness to adopt the JR-CC policy than the manufacturers because of the different cost savings.