Research On The Integrated Optimization Of Inventory Control And Transportation Management

Along with the globalization, knowledge transformation and IT application, the enterprise operation has been gotten into a complicated environment. This uncertain environment, which resulted in the demand uncertainty, competition uncertainty and technical uncertainty, requires more to the resources on the aspect of quantity, time and space. An enterprise can hardly survive and develop in such market competitions by itself. So, modern logistics management has to expand their object from the company itself to the upper and the backward enterprises and to seek cooperation with them. Under this era background, each part of logistics are surely integrated. After inventory and transportation integration, the pattern which runs in integrated and systematic way broke the traditional management pattern that operated separately, and it makes the supply chain system attain a harmonious operation.This dissertation is composed on the presupposition of considering analyzing market demands (MD) and order fulfillment lead time (OLT). The author established four integrated optimal models of inventory- transportation system by analyzing inventory cost of vendor, which can be classified into four kinds for their certainty as certain MD & certain OLT certain; MD & random OLT; random MD & certain OLT; and random MD & random OLT. The author Verify the correctness and feasibility of the random MD & random OLT model by example. At last, based on ABC analysis in the inventory, we assume that stores perform periodic review and order strategies. We also assume that customer demand at each store is random and follow certain distribution. Our object is to minimize the total cost of transportation and inventory in the supply chain under the restriction of given customer service level. By analyzing the relations of inventory level and customer random demand at stores this article gets optimum order policies.