Summary
Inventory management plays a vital role in supply chain
management. The service provided to the customer eventually
gets enhanced once the efficient and effective management of
inventory is carried out all through the supply chain. Thus the
determination of the inventory to be held at various levels in a
supply chain becomes inevitable so as to ensure minimal cost for
the supply chain. Minimizing the total supply chain cost is meant
for minimizing holding and shortage cost in the entire supply
chain. The minimization of the total supply chain cost can only
be achieved when optimization of the base stock level is carried
out at each member of the supply chain. A serious issue in the
implementation of the same is that the excess stock level and
shortage level is not static for every period. In this paper, we
have developed a new and efficient approach that works on
Genetic Algorithms in order to distinctively determine the most
probable excess stock level and shortage level required for
inventory optimization in the supply chain such that the total
supply chain cost is minimized.