Research On Inventory Sharing Mechanism Of Enterprise Group

Worldwide, enterprise groups have the advantages of scale and coordination effect, so they are often the stronger ones in the market economy and competition. However, many Chinese enterprise groups don’t have such advantages, as their birth and development process is full of bureaucratic affects. One of the drawbacks of Chinese enterprise groups is the lack of inventory sharing. Inventory sharing within enterprise group is known to be a key element of effectively allocating recourses among sub-companies and improving the operational efficiency of the whole enterprise group. In this dissertation, two universal pattern of inventory sharing-inventory sharing among relatively independent sub-companies and inventory sharing based on inventory pooling-was discussed. Since most sub-companies of Chinese enterprise groups are financially independent units, the game theory was used to analysis the individuals decision making processes for inventory sharing on different sub-companies. Also, the transfer pricing method was used to solve that problem. As for inventory sharing by inventory pooling, the key problem is how to deal with conflicts when more than one inventory needs were requested. In this dissertation, the differentiating policy stemmed from yield management was used to set up a rationing model for inventory pooling. Numerical example shows the feasibility of the model, sensitivity analysis was performed to give a better knowledge of the model. Finally, the China Railway Material Company case was presented as a case study.In addition, this dissertation contains22pictures,1table and50reverences.