Integrated Production-inventory-transportation Optimization Model Under Stochastic Demand

Production cost, inventory cost and transportation cost are play an important role insupply chain cost, so production control, inventory control and transportationmanagement are three significant fields in supply chain management. In the real life,many factors are randomly change, thus the traditional literature of company or supplychain operation usually considers the integrated production and inventory optimizationproblem or the integrated inventory and transportation optimization problem. Thisdissertation considers of the non-centralized supply chain, mainly researches on theproduction-inventory-transportation optimization under stochastic demand. Here is themain research work of the dissertation.(1)It considers the production-inventory-transportation optimization understochastic demand with single-vendor and multi-retailer. In the decentralized decisionscenario, each retailer independently decides its optimal order quantity and order time,and the supply makes the delivery based on retailers’ decision. In the centralizeddecision scenario, the supplier decides the distribution quantity and distribution time.Then the integrated production-inventory-transportation optimization model is built.This paper designs a two-phase algorithm combined with simulated annealing algorithmand particle swarm optimization, in order to obtain optimal distribution quantity,optimal routings and maximum expected total profit. Then a revenue sharing contract isused and the increased profit is shared by the supplier and retailers, therefore, all ofthem are willing to cooperate with each other. At the end of the paper, a numerical resultis given to show that the integrated optimization model is better than the decentralizeddecision model.(2)It considers the production-inventory-transportation optimization understochastic demand with multi vendor and multi-retailer. In the decentralized decisionscenario, if the distances from retailers to the supplier are less than or equal to a fixedvalue, the transportation costs shall be undertaken by the supplier; otherwise, by theretailer. According to the profit, each retailer independently chooses its supplier anddecides its optimal order quantity and order time. Then the supplier makes the deliverybased on retailers’ decision. In the centralized decision scenario, the nearest neighboralgorithm is used to make partition of retailers, thus the problem is transformed intointegrated production-inventory-transportation optimization model under stochasticdemand with single-vendor and multi-retailer.