Research on Supply Chain System Model and Algorithm under Stochastic Demand Conditions

Abstract

The inventory and transportation joint decision making problems of logistics delivery (distribution) center for single customer has been studied in this paper, considered about the influence of basic inventory level on transportation cost; for situations of customer ordering demands exceeding the basic inventory and own transportation capacity reserve, it needs to order goods from suppliers and adopt the combination method of delivering goods immediately with logistics of third party and delaying to the next delivery of priority transport. At the same time, restrict the general penalty cost delay shipments. Set up mathematical model with the minimum corresponding transportation and inventory correlation total cost mathematical expectation under the situation of stochastic demand, demonstrate the main properties of this model and based on this to construct a practical optimization method to attain the optimal decision making the transportation and inventory total expected cost the minimum.