An integrated research program is proposed to develop mathematical models for strategic planning of logistics systems in which a central depot routes vehicles to replenish depleting inventories of spatially dispersed customers. The models will incorporate such system complexities as probabilistic customer demands, local inventory holding capacities, vehicle capacities, cost of alternative vehicle types, point-to-point travel times, and nonlinear "loading" and "off loading" times. The effort is directed to assist system designers to address important strategic problems such as: 1) fleet sizing and mix; 2) determining vehicle capacities; 3) determining local inventory holding capacities; 4) investigating alternative technologies for "loading" and "off loading"; 5) designing the logistics system with or without transhipment points; 6) designing hierarchial distribution networks. The work is directed at complimenting important work done over the past five years in tactical inventory/routing problems. The new methodologies will be tested with data from operating systems. Dick Larson is extremely qualified and based on past performance is very likely to provide breakthroughs in modeling integrated systems that will be fundamental to operational science.
