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G-NETWORKS AND THE OPTIMIZATION OF SUPPLY CHAINS

Published online by Cambridge University Press:  08 April 2019

Yi Wang
Yi Wang*
Affiliation:
Intelligent Systems and Networks Group, Department of Electrical and Electronic Engineering, Imperial College, London SW7 2AZ, UK E-mail: [email protected]
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Abstract

Supply chains are fundamental to the economy of the world and many supply chains focus on perishable items, such as food, or even clothing that is subject to a limited shelf life due to fashion and seasonable effects. G-networks have not been previously applied to this important area. Thus in this paper, we apply G-networks to supply chain systems and investigate an optimal order allocation problem for a N-node supply chain with perishable products that share the same order source of fresh products. The objective is to find an optimal order allocation strategy to minimize the purchase price per object from the perspective of the customers. An analytical solution based on G-networks with batch removal, together with optimization methods are shown to produce the desired results. The results are illustrated by a numerical example with realistic parameters.

Keywords

analytical solutionG-networks with batch removallagrange multipliersoptimizationperishable itemssupply chains
Type
Research Article
Information
Probability in the Engineering and Informational Sciences , Volume 35 , Special Issue 1: Learning, Optimization, and Theory of G-Networks , January 2021 , pp. 62 - 74
Copyright
Copyright © Cambridge University Press 2019

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