Inventory Model And Aided Ordering Decision-Making Support System

One of the important contents in business management is to consider how to increase income and decrease expenditure. As the cost center of the business, the logistics department plays a rather important role in increasing income and decreasing expenditure. Good logistics management can increase fund turnover, reduce operating costs and increase total profits by increasing inventory turnover. In the logistics chain, reasonable inventory control is one of the important links. Successful inventory control and reasonable control of its costs are very important. It has become a widely accepted idea that the decision-maker of a business use the modern information technology and aid decision-making system to develop a "third profit source"has become. Overinventory or underinventory affects the normal operation of any business. In case of overinventory, it not only lets circulating funds lie idle but also occupies more storage space and increases the storage cost. In case of underinventory, the business may be forced to stop production due to lack of raw materials, or may need to temporarily increase employees and expenditures because of out-of-stocks. So it is an important task to seek a reasonable amount of inventory, amount of order, date of order and other information. The first thing in scientific order decision making and reasonable control of inventory costs is to get a correct and comprehensive understanding of inventory and the composition of its costs. Managers always have a partial understanding of the inventory cost due to its invisibility, so they often ignore some of the important aspects. Generally, the composition of inventory costs can be divided into the following three major parts: The first is the holding cost, or the expenditure needed for holding and managing the inventory; the second is the acquisition cost, or the expenditure needed for acquiring the inventory and the third is the shortage cost, or in short the loss caused by inventory supply interruption. Specifically, control of inventory cost is realized through reasonably optimized management, and the contents of inventory management are divided into the following three levels: (1)Inventory decision making—control of the holding cost: Managers, through an analysis of supplies, need to decide which inventory for a product is not needed, as well as the inventory size, turnover and distribution. (2)Determination of the inventory ordering method—control of the acquisition cost: Managers need to determine the inventory reorder point, order cycle and amount per order. (3)Demand forecast—control of the shortage cost: One important task in inventory management is to obtain relatively accurate demand forecast. This paper analyzes and studies two major categories of batch order models (deterministic and random) and describes in detail the effect of related on model parameters on the information on order decision making, and at the same time examines and analyzes several related factors affecting the models. Through in-depth study and analysis of inventory theory, it seeks a more reasonable inventory control strategy and describes in more detail the related parameters affecting the inventory control strategy and possible problems that may occur. Meanwhile, this paper, in combination with the needs of the production-type business for the logistics and storage system, describes the development of the aid order decision-making system, which is a subsystem of the whole logistics management system. The system can generate the final order decision-making plan through systematic analysis and calculation based on decision maker's selection of the order model and input of related parameters. According to the ordering demand and the overall design idea ,the system mainly offers the following functions: System maintenance is mainly responsible for data backup of this subsystem, import of data and related parameters from other databases and part of database information maintenance. Establishment of the order record is mainly responsible for recording information related to goods ordered. The selection of the order model provides an aid ordering control model for reasonable selection by the decision maker based on specific order demand.The parameter input is responsible for inputting corresponding related parameters based on the selected specific order model. The determination of demand is mainly responsible for determining the demand of this order and the system provides two ways to determine demand: one is probability distribution, the other is forecast. The calculation of order quantity is the order-related information calculated based on model selection, demand determination related parameter input. The generation of the decision making scheme is the final aid order decision making information generated based on order record, order quantity and other related information. Record and scheme inquiry provides ordering record and scheme inquiry and browse. The final decision-making plan information of the system is based on the inventory control model. In order to obtain more ideal decision-making plan information, it is very important to select the model and determine and adjust related parameters. Compared to other information management systems, the system focuses on providing the production type business with the order decision-making support, not on concrete business management. The system is developed using the Microsoft Visual Studio.Net platform. The system utilizes its .NET Frame and ASP.NET Web service support and C# is used as the backend code control language. The SQL Server 2000 large database is used as the background database. The system uses the B/S structure and operates on the Internet, which satisfies geographically dispersed application software architectures with various communication media, providing great convenience for system maintenance and rapid decision-making information generation. Continuous improvement and perfection of the system will make it adapt to more businesses as an order decision support system, having a certain use value.