Study On The Optimization Of Inventory Management Based On CPFR

The domestic enterprises suffered a hard time during the economic systemtransformation, the reality make it necessary to change management ideology tocontinue the progress. The inventory management, as part of enterprise management,has important influence on enterprise. Because the relationship of node enterprise inthe chain becomes close, any one could not operate beyond the chain.And enterprisesfound it hard to solve the market strike by itself while the uncertainty increases. Thesupply chain theory is a effect way to solve the problem.The paper analyzed the normal inventory model including Economic OrderQuantity（EOQ）、Economic Production Lot（EPL）、Monocycle Inventorybased onthe study of inventory cost, conventional inventory management and supply chainmanagement. To make apertinent analysis, the paper analyzed the enterprise inventorystatus, found out the major problem and the optimization aim of the real inventorymanagement. With the CPFR and the traditional inventory optimization methods, theoptimization model of institute inventory isconstructed,the optimization method is gotand the proposal action is introduced. Besides, the parameters sensitivity analysis iscompleted to determine their influence on the inventory decision.With the result of model computerized and analyzed, the following proposals aremade: to advance the inventory management strategy; to build up the rightcollaboration with the partner; to introduce differential inventory managementstrategy; to adopt the standardization management; build up the effect demandforecast mechanism and to advance CPFR information management level. The resultfrom the testing project gave the evidence of the validity of the optimization method,the real profit gave a distinct rising-up.