The Research On Multi-echelon Inventory Optimization Model Of Supply Chain Distribution System

Inventory control has always been an important part of modern enterprise management, also is one of the main activities in supply chain management process. Enterprises have to keep the right amount of inventory, because inventory has four functions:regional specialization, separation of function, balance demand and reduce the uncertainty. Inventory control will directly affect the supply chain value-added implementation and play a critical role for the supply chain coordinated development.Multi-echelon inventory optimization is a global optimization for supply chain resources, which has developed basis of the single-echelon inventory control. Distribution System is the important area of using multi-echelon inventory control methods. Traditional distribution system multi-echelon inventory optimization is to minimize the cost, and less considers the optimization of inventory turnover time. In this paper, the optimization objective contains inventory cost and turnover time, which is important performance of supply chain.This paper analyzed the basic theory of supply chain inventory management and researched the optimization objectives and principles of multi-echelon control problems. In this paper, the supply chain distribution network inventory system is divided into the distributors'inventory system and retailers'inventory system through analyzing structure and characteristics of distribution system. It will facilitate to research multi-echelon inventory optimization model in the complex case that the distributors use (s, S) policy and retailers use (R, Q) policy. This paper established the function of the inventory system operating costs and inventory turnover time, in order to build a multi-objective optimization model for the multi-echelon inventory of supply chain distribution system. This paper has also designed the genetic algorithm for the inventory model. At last, this paper selected an enterprise regional distribution system as an example, using mathematical simulation MATLAB software to realize this problem. By analysis of the results, it is proved that the optimization model and algorithm is effective and reasonable.