Research On The Optimal Strategy Of The Powerful Retailer In Two Different Modes Of Shipment

This paper deals with the optimal strategy of the powerful retailer in two different modes of shipment through stock cost control considering stochastic demand constraints and fixed value order lead-time.The models established in the paper carries on sensitivity analysis to some parameters. Finally paper carries on the explanation through the value example to the models analysis's results, and further investigates the influence that the controllable order lead-time compression of the powerful retailer affects the optimal strategy of the powerful retailer.First of all, the advantages and disadvantages of two different modes of shipment are given in the paper through the introduction; meanwhile, this paper describes the background to the study and research significance.Secondly, paper shows the necessity and importance of the existence of stock through literature review and research, summarizes the evolution of the inventory control process; a summary of the previous research literatures in the inventory control and the link between them are given; and QR (rapid response) and the competitive advantage of the dominant position of the powerful retailer are described.Third, in view of the problems and scarcities of previous research literatures about inventory control, the research goal and the research significance and the research method are gived in the paper; and the link between two different modes of shipment is given.Fourth, this paper investigates the powerful retailer's optimal strategy when the controllable order lead-time is fixed value; analyzes the existence and uniqueness of the powerful retailer's optimal order and cost; and further analyses the sensitivity resulted from the effect of delayed delivery scale-up factor and other parameters to the powerful retailer's optimal order and cost; and investigates the optimal strategy of the powerful retailer. At last, the conclusion is given through the model analysis and the numerical experimentation.Fifth, this paper illustrates the impacts of the controllable lead-time compression to the optimal strategy of the powerful retailer in two different modes of shipment; and simplifies the inventory models under the controllable lead-time compression; analyses the sensitivity resulted from the controllable lead-time compression to the powerful retailer as well as the existence of the powerful retailer's optimal strategies.In this paper, the innovations as follows:First of all, the integrated inventory models created in the paper generally consider the retailer's dominant advantages, stochastic demand, the impacts of controllable order lead-time, small-lot shipment, two different modes of shipment, and different costs resulted from different modes of shipment; so the inventory models established in the paper have a more practical operation.Secondly, the inventory models in the paper with controllable order lead-time compression are simple; the cost of the controllable lead-time compression are reflected in the cost of the increase in transportation cost.While the increase in transportation costs reflect of the incremental unit cost of the controllable order lead-time compression. The models established in the paper simplify the complexity and improve the operability of inventory models.Third, taking into account the impacts of uncertain factors, Minmax method is used to build the inventory model of the powerful retailer; that is, the powerful retailer's inventory control models and optimal strategy are based on all of transportation cost and order lead-time compression cost are assumed by the powerful retailer.