Rationing mechanismsandinventorycontrol-policyparametersfora divergent supplychainoperatingwithlostsalesandcostsofreview

We considerastaticdivergenttwo-stagesupplychainwithonedistributorandmanyretailers.The unsatisfieddemandsattheretailers’endaretreatedaslostsales,whereastheunsatisfieddemandis assumedtobebackloggedatthedistributor.Thedistributorusesaninventoryrationingmechanismto distributetheavailableon-handinventoryamongtheretailers,whenthesumofdemandsfromthe retailersisgreaterthantheon-handinventoryatthedistributor.Thepresentstudyaimsatdetermining the bestinstallationinventorycontrol-policyororder-policyparameterssuchasthebase-stocklevelsand review periods,andinventoryrationingquantities,withtheobjectiveofminimizingthetotalsupply chain costs(TSCC)consistingofholdingcosts,shortagecostsandreviewcostsinthesupplychainovera finite planninghorizon.Anexactsolutionprocedureinvolvingamathematicalprogrammingmodelis developedtodeterminetheoptimumTSCC,base-stocklevels,reviewperiodsandinventoryrationing quantities(intheclassofperiodicreview,order-up-to S policy)forthesupplychainmodelunderstudy. On accountofthecomputationalcomplexityinvolvedinoptimallysolvingproblemsoveralargefinite time horizon,ageneticalgorithm(GA)basedheuristicmethodologyispresented.