Coordination Mechanism of Transportation-inventory Model in Fuzzy Environment

Abstract

For the system coordination of transportation-inventory problem in the presence of uncertainty in customer demand, inventory cost, and lead time, this paper, from the point of optimizing logistics cost, establishes the optimization cost model of transportation-inventory system, and transportation cost in the model is taken as a step function of shipment lot size. Based on the fact that the model’s optimal solution that can minimize system cost is not always viable in the real world, a coordination mechanism that can embody the purpose of decision-makers and improve the feasibility of model is advanced. In the end, the numerical examples are applied to show the effectiveness of the coordination mechanism: not only can the experience judgment of decision-makers be embodied, but the system cost obtained by the coordination mechanism is smaller than the cost under optimal transportation policy and optimal inventory policy.