Research On Drug Trading Enterprise Replenishment Decision

Drug is a special commodity, and drug has different natural attributes and social attributes to other commodities. In the field of drug circulation, drug trading enterprise is the bridge between drug Manufacturing enterprises and consumers. Drug trading enterprise is belonging to commercial enterprise, and its objective is to make maximize profits. However, there are many problems in the process of business operations. One of the important issues is how to make drug replenishment decisions, irrational decisions will lead to high inventory holding costs, shortage costs and overdue cost. Therefore, how to solve the replenishment decision problem is related to survival and development of drug trading enterprise.The classical EOQ model for inventory management is the basic model Summarized by practices, which has already satisfy a few real cases in our lives. The classical EOQ model could not meet the need of complexity goods and enterprises in modern social. In pasted years, many experts and scholars dedicated to inventory management model. They had achieved various research results, which have positive effects to some industries. But the author found that, in the pasted studies, there are few researches on drugs inventory management. The only exist results remained mostly in the drug's classification management. Therefore, have a research on the inventory management of drug trading enterprise is necessary.Based on the analysis of drug trading enterprise, drug's properties and drug replenishment operation, the author found that the decision of drug replenishment is effected by drugs procurement, warehousing and distribution, it also related by marketing demand, expiration date, drug purchase price and other factors, based on which, the author analysis the objectives and contents of drug trading enterprise. Under the assumptions, this paper creates a replenishment decision model, which is applicable to drug trading enterprise, to solve the stochastic demand, periodic replenishment, price discount of nearly valid and two batches problems. In the end, the paper had proved the effectiveness of model.