An Effective Hybrid Self-Adapting Differential Evolution Algorithm for the Joint Replenishment and Location-Inventory Problem in a Three-Level Supply Chain

The integration with different decisions in the supply chain is a trend, since it can avoid the suboptimal decisions. In this paper, we provide an effective intelligent algorithm for a modified joint replenishment and location-inventory problem (JR-LIP). The problem of the JR-LIP is to determine the reasonable number and location of distribution centers (DCs), the assignment policy of customers, and the replenishment policy of DCs such that the overall cost is minimized. However, due to the JR-LIP's difficult mathematical properties, simple and effective solutions for this NP-hard problem have eluded researchers. To find an effective approach for the JR-LIP, a hybrid self-adapting differential evolution algorithm (HSDE) is designed. To verify the effectiveness of the HSDE, two intelligent algorithms that have been proven to be effective algorithms for the similar problems named genetic algorithm (GA) and hybrid DE (HDE) are chosen to compare with it. Comparative results of benchmark functions and randomly generated JR-LIPs show that HSDE outperforms GA and HDE. Moreover, a sensitive analysis of cost parameters reveals the useful managerial insight. All comparative results show that HSDE is more stable and robust in handling this complex problem especially for the large-scale problem.