Research On Inventory And Transportation Integrated Optimization Of IT Items Based On VMI

IT industry is one of the most important industries both around the world and in our country. Furthermore, the IT in our country is of high growth and has a huge potential market. Logistics of IT items consists of its supply chain, and it is also the important connection which consists of the value in use of the item. As the same with other traditional industries, an effective logistics operation could contribute to cut down cost on purchasing, inventory and sales, at the same time, to improve the level of customer service and satisfaction. Without the modern logistics management, the operation of IT corporations won’t be complete.Inventory and transportation are the two aspects of total logistics cost, which take the biggest proportions. It’s very necessary to do researches on them, if we want to decrease the logistics cost. Inventory is closely related to transportation, this is because there’s a trade-off effect between inventory cost and transportation cost. More and more scholars tend to consider them in one mathematic model in the recent years.VMI could effectively dodge the trade-off effect between inventory cost and transportation cost, improve supply chain effectiveness and decrease the total cost.As a result, the article discussed the integration problem of IT items’inventory and transportation under VMI, based on the existing documents. Considering features that IT items have, the article has set up a supply chain system model composed of many suppliers and many retailers. And it also has solved a practical problem by the programming solver of excel. The main aim of the model was to decide the most optimal solution on inventory transshipment and transportation amount, which would minimize the total cost of the system. The paper was written to provide a idea and method to reduce the logistics cost of IT items.