Modeling and Algorithm for Inventory-transport Integrated Optimization Problem in Many-one Distribution Network

Abstract

In view of typical many-one distribution network in the modern distribution logistics system, the mathematic model on the inventory-transport integrated optimization problem with stochastic demand and diversified products was established by using bi-level programming method. Both decisions of inventory control and transport arrangement were made at the same time. An improved heuristic algorithm was proposed to divide the integration into inventory and transportation: the cost were distributed by the former according to different products and the optimized cost was sought out by the latter according to different periods thus the inventory-transport integrated optimization problem was solved through the repeated iteration between the former and the latter. At last, the validity of the models and the algorithm was proved by some mathematic examples, and the mathematic description and the heuristic algorithm to the massive practice of the modern distribution logistics system were realized.