Application of simplified swarm optimization algorithm in deteriorate supply chain network problem

In the 21th century, the importance of the integration among enterprises has been raised. Many enterprises and managements start to be conscious of supply chain management. In supply chain management, reducing operating cost and satisfying customer demand are the most important things. However, the products may be spoilt during the delivery due to collisions, traffic accident, weather factor, theft and so on. Hence, in this paper, we consider deterioration effect in a three-stage supply chain deteriorated network with a mathematical model. A novel artificial intelligence algorithm named Simplified Swarm Optimization (SSO) is adapted in the above problem to minimize the total operating cost. Extending local search (ELS) is attached to enhance the performance of the original SSO. A numerical example network system is presented to compare the proposed algorithm with Genetic Algorithm (GA) and Particle Swarm Optimization Algorithm (PSO). Results indicate that SSO-ELS provide a better solution than its competitors on the problem.