The Optimization and Integration of the Transportation and Inventory Cost Based on Time in Supply Chain Logistics System

Abstract

This paper puts forth a model of the transportation and inventory integration and optimization problem based on system and optimal theory which we take into account the antinomy relationship of transportation and inventory and the antinomy relationship of inventory and stock-out in supply chain logistics system. We consider that the resources available and the total time of inventory and transportation are limited.In the transportation process, transportation cost, transportation time and transportation capacity may vary between the two adjacent nodes for the reason of the transfer among various transportation modes. When the mode of the transportation is changed, we need consider the transshipment time and transshipment cost.The issue is a multi-transportation option network question under the normal distribution of the minimum total cost which consists of transportation cost, inventory cost, stock-out cost and time cost. In this paper, we comparatively study and specifically calculate the minimum total transportation and inventory cost in several different cases. Our paper shows that the result is not only more reasonable and effective than other models which can be seen in the appendix but also more in line with the actual situation of the supply chain logistics system. We can get our purpose that we may have a certain referential significance to reduce the total cost and raise the total profit of the supply chain logistics system.