Research On Inventory-Distribution Integrated Optimization For VMI Systems

With the growing logistics management and increasingly fierce market competition, traditional enterprise competition has been changed into the cooperation between enterprises in supply chain. Vendor Managed Inventory has been adopted broadly in the process of change. VMI provides suppliers more opportunities to arrange for inventory and distribution reasonably through overall planning and reduce logistics cost. The research on inventory-distribution integrated optimization has a great significance.In this paper, the inventory-distribution integrated optimization problem on a two-echelon logistics system composed of a single distribution center and many sales points is studied under the conditions of VMI strategy and determinate demand. Firstly, based on VMI theory, the author separately analyses inventory control and distribution decision-making and then describes the relationship between them from the supplier’s point of view; Secondly, considering both inventory cost and distribution cost in logistics system, the author constructs a integrated optimization model to minimizing the system cost and puts forward the iterative algorithm to solve the model, so as to get the optimal solution of inventory control and distribution decision-making. At the same time, distribution is divided into TL and LTL to consider in the calculation of the distribution cost and the genetic algorithm is designed to solve it. Finally, the author selects an enterprise logistics system as an example and uses mathematical simulation MATLAB software to realize this problem, which in return demonstrates that the optimization model and algorithm is effective and reasonable.