On the Inventory-Transportation Integrated Optimization Problem

This paper assumes that the demand is a Poisson random process, the inventory strategy is (s, S), each demand amount Q* is same, scale of the economic transport quantity Q0=p Q* (p is a positive integer), in which Q* is the optimal order quantity of joint pricing used by the supplier and retailer, and the supplier will be entitled to ignore small group of temporary order bills to accumulate them to a certain amount and so as to distribute together, and the retailer also agrees to wait in allowed delaying time. Based on this hypothesis, we establish an inventory-transport integrated Optimization model, design an algorithm, and exemplify the rationality of the model and algorithm by a concrete example.