# G-networks and the optimization of supply chains

## TL;DR

This paper introduces the application of G-networks to optimize order allocation in supply chains with perishable goods, aiming to minimize purchase prices and improve efficiency.

## Contribution

It is the first to apply G-networks to supply chain management for perishable items and provides an analytical solution for optimal order allocation.

## Key findings

- Optimal order allocation reduces purchase price.
- Analytical solutions effectively model supply chain dynamics.
- Numerical example demonstrates practical applicability.

## Abstract

Supply chains are fundamental to the economy of the world and many supply chains focus on perishable items, such as food, or even clothing that is subject to a limited shelf life due to fashion and seasonable effects. G-networks have not been previously applied to this important area. Thus in this paper, we apply G-networks to supply chain systems and investigate an optimal order allocation problem for a N-node supply chain with perishable products that share the same order source of fresh products. The objective is to find an optimal order allocation strategy to minimize the purchase price per object from the perspective of the customers. An analytical solution based on G-networks with batch removal, together with optimization methods are shown to produce the desired results. The results are illustrated by a numerical example with realistic parameters.