A genetic algorithm for a multi-product distribution problem

Abstract

This paper addresses a distribution problem involving a set of different products that need to be distributed among a set of geographically disperse retailers and transported from the single warehouse to the aforementioned retailers. The distribution and transportation are made in order to satisfy retailers' demand while satisfying storage limits at both the warehouse and the retailers, transportation limits between the warehouse and the retailers, and other operational constraints. This problem is combinatorial in nature as it involves the assignment of a discrete finite set of objects, while satisfying a given set of conditions. Hence, we propose a genetic algorithm that is capable of finding good quality solutions. The genetic algorithm proposed is used to a real case study involving the distribution of eight products among 108 retailers from a single warehouse. The results obtained improve on those of company's current practice by achieving a cost reduction of about 13%.