Abstract:To implement the integrated supply chain and VMI (Vendor-managed inventory), an optimization model was proposed by taking both the delivery expenses and the inventory expenses of customers into account. Under the condition that vehicles for delivery have been dispatched for specific customers as the preliminary plan, the model can be divided into two submodels of the inventory allocation and traveling salesman problems to reduce the difficulty of solving the model. The submodels can be solved with some available algorithms and integrated into the original model.