Optimal selection of retailers for a manufacturing vendor in a vendor managed inventory system

In this paper, we consider a two-leveled chain of supply that includes a manufacturer and a few retailers and in this chain VMI (Vendor-Managed Inventory) policy has been used. In this model, the manufacturer produces a limited amount of kind of production, and each retailer whose request is limited purchases the production with the wholesale price and sells it in retail price. In addition to the manufacturer’s different decisions about selecting a retailer, and retailer's desire to join VMI system, simultaneously we have considered some other important variables such as wholesale price, retail price, and common timely cycle of the product. Our purpose in this article is to help the manufacturers select the retailers, which both covers the candidate retailer’s answer and maximizes the interest of manufacturer and retailer. In order to find an optimized wholesale and retail price for both manufacturer and retailer, to find a common timely cycle for the replenishment of the retailer's production. In addition, to maximize the interest of manufacturer and the selected retailers, we have used genetic algorithm to solve the model, and to increase the effectiveness of this algorithm we have used the Regression way to adjust the parameters.