A realistic perish ability inventory management for location-inventory-routing problem based on Genetic Algorithm

Abstract

In this paper, it was an attempt to be present a practical perishability inventory model. The proposed model adds using spoilage of products and variable prices within a time period to a recently published location-inventory-routing model in order to make it more realistic. Aforementioned model by integration of strategic, tactical and operational level decisions produces better results for supply chains. Due to the NP-hard nature of this model, a genetic algorithm with unique chromosome representation is used to achieve the optimal solution and reasonable time. Finally, the analysis is carried out to verify the effectiveness of the algorithm with and without considering the cost of spoiled products.