Heuristic algorithms applied to the problems of servicing actors in supply chains

Abstract

The paper discusses main decision problems analysed in the subject matter of servicing actors operating in the supply chains, i.e. the vehicle routing problem, vehicles-to-task assignment problem and the problem of entities’ localization in the supply chain. The input data used to describe supply chains is given as well as the basic constraints and the criterion functions used in the development of mathematical models describing the supply chains. Servicing actors in supply chains is the complex decision making problem. Operators in the supply chains are constrained by: production capacity of the suppliers, the demand of the customers in particular working days, storage capacities of warehouses, handling capacities of warehouses, suppliers’ and warehouses’ time windows and other. The efficiency of supply chain is described by cost of transport between operators, costs of passing cargoes through warehouses and delivery time to the recipient. The heuristic algorithms, like genetic and ant algorithms are detailed and used to identify issues related to the operation of actors operating in the supply chains are described. These algorithms are used for solving localization problems in supply chains, vehicle routing problems, and assignment problems. The complexity of presented issues (TSP is known as NP-hard problem) limits the use of precise algorithms and implies the need to use heuristic algorithms. It should be noted that solutions generated by these algorithms for complex decision instances are sub-optimal solutions, but nonetheless it is accepted from the practical point of view.

Keywords

• supply chain
• genetic algorithm
• ant algorithm