Abstract
In view of typical many-one distribution network in the modern distribution logistics system, the mathematic model on the inventory-transportation integrated optimization problem with stochastic demand and diversified products was established by using a bi-level programming method. Both decisions of inventory control and transportation arrangement were made at the same time. An improved heuristic algorithm was proposed to divide the integration problem into both problems of the inventory and the transportation: the cost were distributed by the former according to different products and the optimized cost was sought out by the latter according to different periods, thus the inventory-transportation integrated optimization problem was solved through the repeated iteration between the former and the latter. The mathematic description and the heuristic algorithm to the massive practice of the modern distribution logistics system are realized.
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