A Periodic Review Stochastic Joint Inventory and Transportation Problem Based on TCPP Method

On the basis of the analysis of the defects of the Fixed Partition Policies(FPP)method, a new heuristic method for solving Joint Inventory and Transportation Problem(JITP), Transportation Cost Partition Policies(TCPP) method is proposed. Features and applicability of this method is presented. A mathematic model of a periodic review stochastic JITP consisting of one distribution center and many consumers with order-up-to R inventory policy and Vehicle Routing Problem(VRP) is built. TCPP method is used to solve the problem by developing a heuristic algorithm. The method is tested by computational experiments finally.