Optimization of the Replenishment Strategy for the Supplier Based on Genetic Algorithm

In the supply chain management, the supplier can reduce its total cost by providing price discounts to restrict the retailers ’ replenishment intervals to multiples of a common replenishment interval. In order to accomplish this purpose, supplier often determined a price discount that all the retailers can accept. After the cost of the supplier was further considered, a better price discount was designed, which can meet all the retailers ’ requirements to maximize their benefits. And a new supplier’s minimization problem model based on stackelberg game was designed also. Then a genetic algorithm is used to solve the supplier’s replenishment model. Experiment results of the genetic algorithm demonstrated the feasibility and the effectiveness of the strategy