Vendor-managed inventory (VMI) is one of the emerging solutions for improving the supply chain efficiency. It gives the supplier the responsibility to monitor and decide the inventory replenishments of their customers. In this paper, an integrated location-inventory distribution network problem which integrates the effects of facility location, distribution, and inventory issues is formulated under the VMI setup. We presented a Multi-Objective Location-Inventory Problem (MOLIP) model and investigated the possibility of a multi-objective evolutionary algorithm based on the Non-dominated Sorting Genetic Algorithm (NSGA2) for solving MOLIP. To assess the performance of our approach, we conduct computational experiments with certain criteria. The potential of the proposed approach is demonstrated by comparing to a well-known multi-objective evolutionary algorithm. Computational results have presented promise solutions for different sizes of problems and proved to be an innovative and efficient approach for many difficult-to-solve problems.
Expert Systems With Applications 38(6), pp.6768-6776