Inventory-transportation Integrated Optimization Based on Milk-run Model

Inventory-transportation integrated optimization in the distribution system is important research subject of logistics integration strategy. This paper analyses the relationship between inventory and transportation, builds the ITIO issue optimization based on milk-run mode, and combining the character of Model, this paper designs Genetic Algorithm of natural number coding to solve Vehicle Scheduling model of milk-run, then uses stepwise iterated Algorithm to balance inventory cost and transportation cost, in order to make the total cost of milk-run logistics network system minimum.