A dynamic model for the handling of the surplus bulk goods

With the rapid development of our country, the demands of steel, timber and other bulk goods are greatly increased, the transportation becomes even more important and complicated. For the difference of vehicles´ loading capacity, in the process of transferring vehicles, it is likely to cause surplus. In this paper, we study on the handling of the surplus bulk goods due to the transferring vehicles in purchasing and transportation. In order to choose the best handling mode for the surplus, we establish a model of dynamic programming. In the model, we want to satisfy customers´ needs first, then try to reduce the inventory and make the total costs minimized. At the end of the paper, a timber retailer who imports Russian logs is taken as an example to verify the correctness of the model. The results of the paper can provide some reference for the retailers of bulk goods.