This study presents a method for evaluating overall performance of chain store handling seasonal items.
Various factors related to the operations of chain store such as
selling price,
expected sales volume,
operating cost,
shortage cost,
carring cost,
transportation cost from the plant,
and type of sales are considered.
With the performance measure developed a set of distribution quantity to the chain stores is chosen through dynamic programming formulation which maximizes the total profit of the company operating number of chain stores.
We consider the above problem in two cases depending on the number of manufacturing plaints the company operates. For the case of multiple manufacturing plants, a heuristic solution procedure is developed.
