A Research On The Inventory Strategy In Supply Chain Management

Studying the theory and methods of inventory control in supply chain management is very significant. Each partner desires to make decisions independently, which has a negative effect on the competition of supply chain. It cannot be proper for the current business environment of international competition. To improve the competition of supply chain, making research on supply chain inventory control under the integrative philosophy is valuable and meaningful. Under deterministic environment, this thesis makes research on three kinds of supply chain models: single manufacturer/single retailer model; single manufacturer/multi-retailer model; and single supplier/single manufacturer/single retailer model.The first part of the thesis introduces the concept of supply chain management and the methods of stock control, and then presents background and contribution of the thesis.In the second part of the thesis, a two-stage supply chain model with the objective of profit maximization is formulated, under the following assumptions: goods have deteriorating items, shortages are allowed, and the unsatisfied demand is partially backlogged. The supply chain system can achieve maximum profit after considering the buyer and vendor as a unit to make decision. At last a numerical example is used to demonstrate the rationality of the theorem.In the third part of the thesis, the model of single-manufacture/multi-buyer supply chain with the target of cost minimization will be developed, under the assumption that shortages are allowed and unsatisfied demand is partially backlogged. By using a coordination mechanism through credit option, both the partners can divide the surplus rationally. The numerical example shows that the using of mechanism can achieve optimization for both the supply chain system and each partner.In the fourth part of the thesis, the model of single supplier/single manufacturer/single retailer with the target of cost minimization will be developed. The minimization point of the model will also be proposed. The system cost will be compared under two decision methods through two numerical examples. It will propose the advantages of making decision together in this multi-echelon supply chain system.A summarization and some future research issues will also be proposed in the final section of the thesis.