Methodology for Safety Stock Placement in Supply Chain by Using Simulated Annealing Algorithm



In this paper, we introduce a methodology for safety stock placement in supply chain. The problem has two objectives: minimization of good's delivery time and inventory cost. Because the problem belongs to NP-Hard category, we develop a proper simulated annealing algorithm (SA) for solve the proposed methodology in large scaled problem. For verify the performance and efficiency of the methodology is shown via a numerical example. The obtained results imply the efficiency of proposed methodology and the ability of developed simulated annealing algorithms for achieve to near optimal solution.