Integrated Distribution-Transportation Planning for the Raw Material Supply Chain Management

In this paper, we study an integrated distribution-transportation problem for raw material in supply chain management. A bi-level model is proposed for dealing with this distribution-transportation planning problem. In this hierarchical system, leader is the retailer who wants to maximize total profit and decides the selection for supply location. The follower is the distributor, who responses to these information and will decide the quantities of the raw material. Then, a bi-level decision procedure based genetic algorithm is employed to handle the bi-level model. A case will be presented to prove the effectiveness of the proposed model and algorithm.