Optimization of Consignment-Store-Based Supply Chain with Black Hole Algorithm

Abstract

The globalization of economy and market led to increased networking in the field of manufacturing and services. These manufacturing and service processes including supply chain became more and more complex. The supply chain includes in many cases consignment stores. The design and operation of these complex supply chain processes can be described as NP-hard optimization problems. These problems can be solved using sophisticated models and methods based on metaheuristic algorithms. This research proposes an integrated supply model based on consignment stores. After a careful literature review, this paper introduces a mathematical model to formulate the problem of consignment-store-based supply chain optimization. The integrated model includes facility location and assignment problems to be solved. Next, an enhanced black hole algorithm dealing with multiobjective supply chain model is presented. The sensitivity analysis of the heuristic black hole optimization method is also described to check the efficiency of new operators to increase the convergence of the algorithm. Numerical results with different datasets demonstrate how the proposed model supports the efficiency, flexibility, and reliability of the consignment-store-based supply chain.