Joint replenishment and delivery problem with stochastic demand

This paper considered the joint replenishment and delivery problem under uncertainty. Expect value model of the problem is developed to minimize the total cost, including central warehouse inventory holding cost, ordering cost, delivery cost and customer waiting cost. We simulated the random demand rate using Monte Carlo sampling and proposed a heuristic algorithm to solve the mathematical model of stochastic JRD problem. 1000 randomly generated numerical examples illustrated the effectiveness and efficiency of the approach and algorithm.