Cost Optimization in Three-echelon Supply Chain:Research and Application of Simulation-based Optimization
Wang Hong-sen
Jia Su-ling
Yan Zhi-hua
Abstract：A supply chain system is a non-linear and complex system.In order to optimize the total cost of a supply chain to enhance overall competitiveness, a simulation-based optimization approach was raised. Firstly, the System Dynamics model of a three-echelon collaborative supply chain was built.In order to minimize the total cost, enterprises in this supply chain needed to solve some decision variables.Second-ly, the processes about converting the system dynamics model to a Matlab program model were minutely shown.Some groups of stochastic parameters were used to verify the converting processes.Finally, an ap-propriate Genetic Algorithm was applied to obtain some satisfactory solutions.The results show that this simulation-based optimization approach could not only display the dynamic characteristics of a supply chain, but also solve the problem fast with a high accuracy.It could effectively solve single-objective or multi-objective programming problems in supply chains.A system dynamics model has a relatively fixed structure and does not adapt to a heterogeneous interactive environment.This approach supplements a sys-tem dynamics model.The converted Matlab program model could be deeply simulated and studied.Objec-tive functions and constraints could be flexibly defined.Dynamic changing processes of the system could be minutely analyzed and interactive interfaces to other applications also provided.
Keywords：logistics systemthree-echelon supply chainsimulation-based optimizationsystem dynam-icsgenetic algorithm
Publication Date：2015-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：9( 51-58,65 )