Study on model and algorithm of inventory routing problem

Vehicle routing problem(VRP) is one of important research in the logistics system. Nowadays, there are many researches on the VRP, but their don’t consider the cost of inventory. Thus, the conclusion doesn’t meet reality. This paper studies on the inventory routing problem (IRP)and uses one target function to describe these two conflicting problems, which are very important in the logistics optimization. The paper establishes the model of single client and many clients’ inventory routing problem. An optimizing iterative algorithm is presented to solve the model. According to the model we can confirm the best quantity, efficiency and route of delivery. Finally, an example is given to illustrate the efficiency of model and algorithm.