COST OPTIMIZATION OF SUPPLY CHAIN NETWORK USING ARTIFICIAL INTELLIGENCE TECHNIQUES by Amanjot Singh
In modern era manufacturing units are extra competitive for providing the high-quality products with lowest cost. Organizations have crucial plan to increasing profit, service quality and decreasing total cost i.e. supplier cost, transportation cost etc. in supply chain network. Every company has few aspects of the supply chain network that it must direct and grow beneficially and efficiently to stay alive and raise. Manufacturing industries face many problems in their supply chain network that include- Inability to meet demand for production of products and material, shortage of material/less production, excess of material/more production or holding cost of inventory to keep excess material, high supplier cost and high transportation cost due to mismatch, low profit margin. In the current work artificial intelligence techniques genetic algorithm and pattern search has been used to solve the optimization problem of supply chain network. In supply chain network, total supplier cost and transportation cost has been optimized. A comparison has been carried out with actual cost. From simulation results, we can see that pattern search algorithm gives optimal solution for supplier cost and transportation cost. Thus, pattern search method is effective for solving supply chain network problem. By using this method supplier cost reduced to Rs. 473900 and transportation cost reduced to Rs. 39000 from actual cost.