Optimal Model and Solution Algorithm of Supply Chain Distribution Problem Associated with Fixed Charge and Multiple Transportation Modes Selection

This paper considers a two-stage fixed charge distribution problem associated with multiple transportation modes selection of a supply chain, two kinds of transportation cost and one kind of transshipment cost are involved in: a continuous cost that linearly increases with the amount transported between a source and a destination, and secondly, a fixed charge, that incurs whenever there exists a transportation of a non-zero quantity between a source and a destination, Thirdly, a transshipment cost, incurs whenever there exists a transshipment in the distribution centers (DCs). An optimal model for this problem is presented, the original problem is converted to a specific fixed charge distribution problem with time and capability limitation by constructing a virtual transportation networks. A genetic algorithm for solving this problem is designed and applied; a numerical example reveals that the GA can obtain good solution of the problem effective.