A hybrid approach to designing inbound-resupply strategies

A new hybrid approach was developed to determine the optimal inbound-resupply strategy when suppliers ship goods to receivers. The optimal reorder level was calculated on the basis of a simulation of the distribution of demand and the lead time of the various sourcing alternatives. An evolutionary metaheuristic uses discrete-event simulation to calculate safety stock levels and minimize total logistics. By integrating discrete event simulation within an evolutionary metaheuristic, a receiver can avoid rigid assumptions on the demand and lead-time distributions to better determine the reorder point for inbound-resupply strategies