A Study On The Integrated Policies For Inventory Replenishment And Dispatching Of Chains Retailing Enterprise

The inventory and distribution occupy a very important position in supply chian development.They are signs of comprehensive capacity of an enterprise and help companies to creat values for customers at low cost. With the continuous development of chains retailing, retail enterprise pay more attention to inventory and distribution management in supply chain. How to maintain a certain level of customer service and lower inventory and distribution costs becomes a core in the chains retailing.This paper introduces the vendor-managed inventory (VMI) idea into the inventory management of chains retaling. The distribution center plays the role of retailing supplier and make replenishment and dispatching decisions for chain stores. In the VMI environment, based on the time-based policy and quantity-based policy put forward by Cetinkaya & Lee as well as two typical patterns of chains retailing-chain convenience stores and chain store-supermarkets, the time-based integrated replenishment and dispatching decision-making model for chain convenience stores and the quantity-based for chain store-supermarkets are set up.Thus, the integrated replenishment and dispatching decision-making model for chains retailing under normal circumstances is summarized.The innovation based on Cetinkaya & Lee classic models mainly reflects in several aspects: The time-based integrated replenishment and dispatching decision-making model for chain convenience stores consider the rate of deterioration of products. The quantity-based for chain store-supermarkets considers the uncertainty of inventory before replenishment.The correction factors are proposed to approximate the expected dispatching numbers. The simulation is operated for time-based policy and quantity-based policy in order to determine the optimal solution through compareing the simulation results and model optimization results with joint optimization and simulation correction method. The results show that the integrated model not only has maintaining the cost advantages of policis, but also has a good quality of long-term effectiveness.Therefore, this article for the inventory management of chains retailing provides decision-making support to enable chains retailing to reduce logistics costs and enhance customer service levels so as to improve the competitiveness of enterprises.