The Research Of Inventory Models For Deteriorating Items Under Supply Chain Management

With the development of economic globalization and technological advance, buyer-dominated market has come into being. Under this new circumstance, outdated managerial pattern can't adapt to the new needs of enterprise development. Firms must realize low-cost operation and effectively satisfy customers' demands as well, hence it is imperative to explore a new-branded managerial pattern and methodology. Supply Chain Management is the result. Proposed in 1980's and promoted by global manufacturing and economic globalization, the concept of supply chain has been widely used and gradually developed into a new managerial pattern—Supply Chain Management (SCM), which transforms the competition between firms to that between SCM. The use of the thinking of SCM not only enables the enterprise to survive the fierce international market competition, but also reduces the impact of uncertain demand and rapid technological innovation. Nowadays, SCM has become an important research field in management discipline, which core is the optimization of supply chain.As an indispensable part of enterprise operations process, inventory management is a key to the realization of value adding of value chain. Under the pattern of SCM, the inventory not only has a great impact in enterprise operations cost, but also restricts the performance of the whole supply chain. As most of products deteriorate with time, inventory management of deteriorating items has become the hot topic in the research field. By avoiding the shortcomings and disadvantages of traditional inventory control methods and combining with the latest theories and practice, this paper formulates three kinds of inventory models for deteriorating items, assuming demand is deterministic while time is discrete or continuous, demand is stochastic while replenish time is deterministic, and there...