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Research of Inventory-Routing Problem Integrated Optimization Models and Algorithm under VMI

Author: HeWei
Tutor: ChenZiXia
School: Zhejiang Technology and Business University
Course: Management Science and Engineering
Keywords: integrated optimization inventory routing problem game theory vendor managed inventory bi-level programming model hybrid intelligent algorithms
CLC: F274;F252
Type: Master's thesis
Year: 2011
Downloads: 254
Quote: 0
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Abstract


Through integrating and optimizing various resources to reduce the cost of total logistics systems, which is the core of modern logistics systems. Logistics systems integrated optimizations include three aspects logistics node location strategy, inventory control strategy, transport scheduling strategy. The relationships of them is back-efficiency, but if we establish the mathematical model from the perspective of large-scale systems about arbitrariness two of them or all three, use correlative intelligence algorithm to solve, can find the equilibrium point which meets the requirements to the actual system optimization, meet the requirements of modern logistics system planning.In China, the total cost of logistics was 6.08 trillion Yuan in the year of 2009. From the composition of logistics costs, transportation costs was 3.36 trillion Yuan, management fee was 0.72 trillion Yuan, inventory costs was 2 trillion Yuan. This showed that the sum of transportation costs and inventory costs was about two-thirds of the total cost of logistics, which means reducing the transportation costs and inventory costs is the key operation to reduce the total cost of logistics.This paper focuses on the research of the system model, algorithm design, and simulation about inventory-Routing problem. Expanding the research of process design and establish mathematical model on other issues about integrated optimization of logistics systems, specific research includes:First, through the angle of transportation costs, analyzing the importance of transportation and inventory. In the same time, this paper summarizes the contents of inventory-Routing problem.Second, this paper introduces the basic theory about integrated optimization of logistics systems. It includes vendor managed inventory (VMI), inventory control strategy, transport scheduling strategy, logistics node location strategy. In the same time, this paper introduced the concept of inventory-routing problem, location-routing problem, location-routing problem, and location-inventory-routing; established the mathematical model about the structure of one to many network systems.Third, this paper uses the knowledge of game theory to analyze the inventory-Routing integrated optimization problem, introduce the relevant knowledge to the bi-level programming model, assumption conditions and the related definition of symbols. This paper uses bi-level programming model to establish the model of inventory-Routing integrated optimization problem in the logistics system, the aim is minimize of the total cost of logistics system.Then, It proposed the mixed model using prediction method and the iterative method to solute the value of Q. however, we carved up the distribution areas, using mixed intelligence algorithm to solve the vehicle routing problem, putting the result back to the top model for the adjustment. Finally, we use the mat lab programming language to solve them.Finally, this paper used the model divide the distribution areas of Hang Zhou tobacco distribution center into five. We take a 30-minute circle for example, using the model, algorithm and program of this paper to simulate inventory-Routing integrated optimization problem of Hang Zhou tobacco distribution center. The results demonstrate the practicality of the algorithm and model; provide the theoretical basis and practical method of guidance to the inventory-Routing integrated optimization problem of Hang Zhou tobacco distribution center.

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