Research into inventory optimization of a two-echelon distribution system based on particle swarm optimization (PSO)

Abstract

Based on the assumption that distributor and retailers adopt different replenishment policies, this article gives consideration to the relationship between the inventory strategies of the two echelon. The authors construct an inventory model of a two-echelon distribution system under stochastic demand, and solve the problem based on algorithm of Particle Swarm Optimization (PSO) to quantitatively get the optimal ordering strategies of distribution center and retailers.