This paper deals with inventory sharing and routing in the context of decentralized supply chains. The supply chain considered in this paper consists of a single manufacturer distributing its products through a network of independents Points of Sale (POS). The problem is modeled as a 1-leader - n-followers Stackelberg game. A new mixed-integer bi-level program is developed, in which the manufacturer decides first on inventory levels and the distribution routes, considering each follower’s (POS) response function that minimizes the follower’s own cost. A trade-off solution to manage conflict of interests between the parties involved in the supply chain is also proposed. To solve the mixed-integer bi-level program an original hybrid Genetic Algorithm coupled with deep reinforcement learning is developed and used to solve a set of large-size instances. The gap analysis shows that the proposed hybrid algorithm performs quite well and that inventory sharing allows the network to improve its service level.


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    Title :

    Bi-level programming for modeling inventory sharing in decentralized supply chains



    Publication date :

    2022-01-01


    Remarks:

    TRANSPORTATION RESEARCH PROCEDIA ; ISSN: 2352-1465



    Type of media :

    Conference paper


    Type of material :

    Electronic Resource


    Language :

    English



    Classification :

    DDC:    629



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