Khouja [25] formulated a three-stage supply chain model where
a firm can supply many customers. They dealt with three inventory
coordination mechanisms between chain members and solved a cost
minimization model for each. Lee et al. [9] studied about the distribution
planning model for the multi-level supply chain network. The objective
function of suggested model was to minimize logistic costs such as
replenishment cost, inventory holding cost and transportation cost. A
mixed integer programming formulation and heuristics for practical
use were suggested. Lee [9] modeled the distribution planning for the
multi-level supply chain network. Products which are manufactured
at factory were delivered to customers through warehouses and
distribution centers for given customer demands. The objective
function of suggested model was to minimize logistic costs such as
replenishment cost, inventory holding cost and transportation cost.