Differential evolution algorithm for supply chain inventory planning

This paper discusses the inventory planning of a supply chain, which consists of a manufacturer, distributor and retailer.

The differential evolution algorithm is developed to minimize the total system‐wide cost, which consists of supply chain inventory capital, supply chain ordering/set‐up cost and supply chain stock‐out cost.

The differential evolution algorithm helps in determining ordering/production quantity and inventory/service level that should be maintained by each member of the supply chain.

The algorithm developed is useful in increasing the customer service level and in decreasing the inventory level throughout the supply chain.