Simulation Of Location-Routing-Inventory Problem Based On ExtendSim

Optimization of logistics system is the necessary process and method to achieve objectives of logistics management, reflecting the efficiency and effectiveness of logistics management. Facility location problem, vehicle routing problem, and inventory control problem are three key issues among them. Traditionally, in most cases, they would be sovled separately. But in fact, these three key issues are closely related. Therefore, it is necessary to further analyze the internal relations between them and do optimization of the integration. On the other hand, with the development of computer technology and the emergence of research on integrated logistics system, integrated optimization of logistics problems, especially the Location-Routing-Inventory Problem (LRIP) is becoming one of the hot new researches.This paper is in this context proposed to study optimization of LRIP in logistics system. Taking into account the complexity of LRIP and the limitations of mathematical programming method, try using simulation method to analyze and solve this problem.This paper first reviews and summarizes the relevant knowledge and research situation of LRIP. On this basis, use the logistics system with three-tier architecture (including factory, distribution centers, and customers) as the research object, use IDEF mothod to analyze it and build its conceptual model, and then use ExtendSim simulation software to design and build the simulation optimization model, using hybrid genetic algorithm to promote the process of solving the optimal solution of LRIP. Finally, verify the feasibility and effectiveness of the simulation optimization model by case analysis. Thus, study and solve the dynamic LRIP under the conditions of stochastic demand, stochastic vehicle travel time, limited storage capacity, limited vehicle capacity and limited number of vehicles.This research can provide decision support for construction of the logistics system which can effectively control the total cost, and has some significance and reference value.