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The Research On Inventory Management And Cost Optimization In Supply Chain

Posted on:2007-09-08Degree:MasterType:Thesis
Country:ChinaCandidate:L ZhangFull Text:PDF
GTID:2120360185965750Subject:Probability theory and mathematical statistics
Abstract/Summary:PDF Full Text Request
In 21st century, with the rapid development of the information technology, the taking shape gradually of globalization market, enterprises face competing for the resource and market in the world, the old management mode can't already meet such new need. The competition between enterprises has turn into competition between supply chains. The supply chain management arises under this kind of background. With the development of supply chain management, the traditional inventory control theory faces the challenge. There is a great gap between supply chain inventory and traditional inventory theory.In this paper, we study supply chain inventory problem from the view point of quantitative and qualitative. We proposed a policy to optimize the supply chain inventory cost. With the development of electronic commerce, the orders among enterprises tend to be simple and flexible. In order to reduce inventory cost, enhance adaptability to market, more enterprises have been interested in small scale multi-delivery distribution problems. In this thesis, we establish a mathematical model in Chapter 3. In order to reduce the inventory cost, the supplier considers to delivering products for retailer's order quantity in a way of multi-stage. In this way, it is desirable to reduce the total cost of the supply chain. We then test the model through numerical simulation. The result show the rationality and efficacious of the model. In chapter 4, we propose a three-stage supply chain model involving several distributors. Two algorithms are proposed in the solution: the optimal algorithm and the heuristic algorithm. The heuristic algorithm makes more efficient the computing operation that involves increased numbers of distributors. Through numerical experiments the marginal error caused by the algorithm is analyzed. A supply chain is usually divided into three basic stages: procurement, production and distribution. Problems in the very simple but typical three-stage supply chain are the miniature of those of a complex and network supply chain. Therefore, the optimization analysis in the present thesis can serve as good reference for enterprises in China which is implementing supply chain management.
Keywords/Search Tags:Supply Chain, Supply Chain Management, Inventory Management, Inventory Control, Heuristic algorithm
PDF Full Text Request
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