Model and algorithm for inventory-transportation integrated optimization problem—in view of many-one distribution network

VMI (vendor managed inventory) policy coordinates effectively the antinomy between the inventory and the transportation within logistics distribution system. Under VMI mode, integrating inventory and transportation of the supplier and the demander as a whole is vital to achieve the optimization of total distribution cost. In view of typical many-one distribution network in the modern distribution logistics system, the mathematic model on the inventory-transportation integrated optimization problem with stochastic demand and many products is established by using a bi-level programming method; and an improved heuristic algorithm is designed to solve the problem; at last, by some mathematic examples, the validity of the models and the algorithm is proved. And then, the mathematic description and the heuristic algorithm to the massive practice of the modern distribution logistics system are realized.