Research On Inventory Control In Supply Chain Based On Return Polices

Along with economical flourishing and information technology is widely used today, the enterprise competition become more intensive, and the fighting for market is more difficult. Enterprises found that allow products return is an effective method to get more buyers and reflecting good service or reputation, so more and more enterprises through the return polices to achieve the cooperation. Enterprises receiving return products make complex inventory problems become more difficult to control and management. Therefore, inventory control based on return become more important in enterprise production operation management, especially when the enterprise is attached to the whole supply chain, the research on inventory control in supply chain based on return polices even more urgent.The research on inventory control in supply chain based on return polices is based on the related theory of return strategy, inventory control and supply chain management. Under the related theory of the research, we found that inventory management and inventory control methods under the current environment of supply chain exist many shortcomings, and the shortcomings restricts the development of inventory control in supply chain, especially the Vendor Managed Inventory (VMI), Joint Managed Inventory (JMI) and Collaborative Planning Forecasting&Replenishment (CPFR),the three kinds of supply chain inventory control methods in the theory and applications have great differences, still can not guide the practice very well. Therefore, the paper put forward the method and model of three steps inventory coordination based on the return polices.Management, technology and economic feasibility and the advantages of the method of the three steps inventory coordination in supply chain based on return polices make its timely application become feasible. The paper established the basic model of three steps inventory coordination in two level supply chain based on the return polices, the model including information sharing platform, market demand forecast system, return polices system and three inventory coordination system. The model coordinated the interests between manufacturers and retailers, ultimately the profit of the supply chain achieved the maximization and the order quantity got optimal solution through three steps coordination. Later, based on the method of the three steps inventory coordination in supply chain, the paper established the three steps inventory coordination model with one cycle in supply chain. In this model, the profit function as objective function, the mathematical formula derived the optimal order quantity to satisfy the function type under the three steps coordination, and cited a MATLAB genetic algorithm for solving numerical. The obtained numerical simulation results verify the validity of the proposed method. To better explain, the paper further analysis through case.The paper’s innovation points and main content includes:(1) The method of three steps inventory coordination in supply chain based on the return polices make up for the existing supply chain inventory control the shortcomings of the methods. The theory of inventory control under the environment of supply chain management in practice has strong maneuver ability. The new method gives each enterprise of supply chain a new point to solve inventory problems.(2) The paper based on the method of three steps inventory coordination in supply chain was established the three steps inventory coordination model with one cycle in supply chain, and through the model the mathematical formula derived the optimal order quantity to satisfy the function type, for the formulation of new algorithm provides the path.