Research On Integrated Location-routing-inventory Problem Of J Company

Supermarket chains play an important role in the retail industry.The development of supermarket chains can't be separated from the logistics distribution.Logistics system is the support and guarantee for the smooth operation of chain supermarket.The important role of the logistics system is highlighted with the growth of supermarkets.However,the development of logistics system is often lagging behind the development of the supermarket chain particularly in the township supermarket because of the scattered network,vast territory.This paper introduces the current situation of J company.The results show that distribution model,inventory control and vehicle routes are critical and highly related problems in logistics systems.This paper formulate a stochastic mathematical model using two-echelon inventory policy in multi-level distribution network,consisting of one supplier,a set of retailers.Respectively,this paper reduce the total costs by using multi-level distribution network;Reduce inventory cost by using two-echelon inventory policy and improve transportation efficiency by using vehicle routes planning.The LIRP problem is decomposed into two sub-problems of LIP and VRP.And the two-phase heuristic algorithm is applied to solve the problem.At last,the proposed approach is tested and evaluated based on the actual data.The computational results show the proposed approach can resolve this complex problem efficiently.