INVENTORY-TRANSPORTATION INTEGRATED OPTIMIZATION BASED ON THROUGH TRANSPORT POLICY WITH STOCHASTIC DEMAND

This paper considers the inventory-transportation integrated optimization (ITIO) problem in the presence of uncertain customer demand Customer demand is represented by probability theory, and a continuous review inventory policy is applied The relationship between fixed order quantity on distributor and the capacity of a single vehicle is pointed Out. Based on through transport policy, the effect of limited capacity of a single vehicle on transportation cost is considered To the model that minimizes the total cost of inventory and transportation, a series of decision-making values are obtained at the end of the paper.