Coordinated Optimal of Transportation-Inventory with Considering the Capacity of a Single Vehicle

Previous research on coordinated optimization of transportation-inventory seldom analyzed the effect of limited capacity of a single vehicle on logistics cost and there is a need for models involving it for better decision-making. This paper considers coordinated optimization of transportation-inventory model based on direct shipping policy in the loading area. The transportation-inventory model operates in the presence of uncertainty in demands and lead time. We develop the search procedure and iterative method to gain the optimal solution of the model. In the end, the sensitivity analysis with respect to the capacity of a single vehicle shows that savings can be realized when it is considered explicitly in the model.