Inventory Control Model And Optimization Research Of Distribution Network Based On CPFR

With the rise of logistics management, the importance of logistics that made to the company and the society is gaining increasing acceptance, the research on supply chain inventory control and optimization is paying more and more attention. The shortened product life cycle, the increasing personalized customer requirements, the increasing uncertainty of demand, the increasingly difficult of forecasting demand and the increase of transportation and storage costs, these are problems for everyone in the supply chain. In addition, because of the bullwhip effect suppliers are facing more fluctuations of demand than retailers in a supply chain. So, the cooperation of all members in the supply chain is an effective way for the development of the supply chain. CPFR (Collaborative Planning Forecasting and Replenishment, CPFR) as an advanced mode can effectively solve these problems in the supply chain; the main objective of CPFR is how to predict with the real-time information that obtained by collaborative planning, reduce the impact of uncertainties and improve the accuracy of the forecasts, so as to reduce the unnecessary inventory costs and improve the profits and customer satisfaction.This article describes the supply chain inventory management method CPFR, the theory of inventory control and optimization and analyses the relevant research home and abroad. We define the intensity of collaborative planning that measured the degree of cooperation between distribution center and retailer or among retailers, and then obtain the volume of collaborative forecasting and the safety inventory of distribution center and retailers. We respectively build the inventory control model and obtain the order point of distribution center and retailers under the coordination and non-coordination mode of supply chain. On these bases, this paper focuses on North China of Northeast Distribution Company in Petrol China Co, optimizes the inventory of distribution network, and makes a mutually satisfactory inventory control strategy based on customer satisfaction.In this paper, we make a useful discussion of inventory control strategy based on CPFR; the findings provide a theoretical basis and practical experience for the application of CPFR and also provide a new way for companies to implement CPFR.