Retailer's Order Strategy When The Supplier Providers A Quantity Discounts

With the competition becoming more and more fierce and the demand of the consumer changing, especially the science and the technology fast developing lead to the product life cycle become shorter, which make the manager improving their management. The inventory cost account for 30% in the supply chain cost, which occupation lots of cash flow affecting the efficiency of enterprise funds, and the lots of inventory obscures many of the problems in business management. Therefore it is become much more important to mange the inventory and decrease the inventory cost.Each enterprise in the supply chain often takes many measures to increase their sales volume so as to reduce the inventory. Quantity discount is the most measure which is adopted in the real economic activities. This paper form the perspective of the retailer analyze the best order quantity and order time which make the retailer achieve the maximization profit when the supplier give quantity discount.Firstly we review the papers which research on the quantity discount and the short cost and give a briefly summary; combine the knowledge of inventory described the background of this study, presented the purpose and significance of this paper.In the paper we analysis the order strategy of retailer when the suppliers provide quantity discount, the retailer's profit model is constructed, through contrasting the profit of two condition which consider the quantity discount and don't consider the quantity discount to get the quantity discount critical value when the retailer put the quantity discount as order quantity. We also give the factors which constitute the cost of a correlation analysis and sensitivity analysis. Finally, the data demonstrate the effectiveness of decision making bulk orders.In the fourth chapter, we analysis the factors which affect the loss of customer when the inventory is empty. Give the relationship between the compensation and the lost orders of the product which is not the emergency supplies when the customer is the rational man. Through contrasting the profit of two condition which consider the quantity discount and don't consider the quantity discount to get the quantity discount critical value when the retailer put the quantity discount as order quantity. We also give the factors which constitute the cost of a correlation analysis and sensitivity analysis. Finally a summary paper on this article, and proposes directions for further research.