Inventory Optimized Allocation Strategy Research For Dual-Channel Retailer

This paper seeks to analyze changes in the in the business world as the networks of B2C retailers and dual-channel manufacturers face growing online competition, and as traditional large retailers attempt to expand their market share through development of online channels to become dual-channel retailers. Retailers in the midst of the single-to-dual channel transformation are able to manage the allocation of inventory between central warehouses and physical retail outlets. The optimal method for maximization of profits for these flexible two-channel retailers is the main concern of this thesis. This paper models optimal inventory levels for three different warehouse-outlet allocations under dual online and offline channels. The processes and outcomes of this research present valuable theoretical and practical significance for retailers who are in transition and those who have already undergone a successful transformation.The main work and conclusions are as follows:(1) Analysis and background on the development of online sales over the past five years, the development of pure network B2C retailer and manufacturers operating in dual channels, and combined in multi-channel analysis of domestic and international sales:inventory control and management, the newsboy model, and a summary of some of the literature related to this thesis. Finally, the restructuring and transformation process led to the development of issues in inventory allocation. This article seeks to answer the problems of inventory optimization and decision-making in three specific models. Research methods attempting to solve the profit maximization problem led to the development of the newsboy model of optimal inventory amount.(2) After three models in the study, this thesis uses Matlab programming example simulation, analyzing of the optimal inventory inventory allocation model in three dual-channel retailers, the relationship between profits and demand uncertainty. Firstly, optimal Inventory of centralized management mode of dual-channel retailer is less than the optimal inventory of decentralized inventory management. Also the offline channel physical stores centralized inventory management model is line more superior than the central warehouse centralized inventory management. Secondly, the two-channel retailer of decentralized management of inventory’s profits is greater than the centralized inventory management mode. In the two centralized inventory management modes, the physical stores centralized management inventory’s profit is higher than the profits obtained by the central warehouse centralized inventory management.(3) Dual-channel retailer’s centralized inventory management mode, the thesis concludes that it’s recommended that the central warehouse and distribution center of dual-channel retailer can be outsourced to domestic well-known large-scale third-party logistics distributer, to integrate the intermediate links in the supply chain system, to shorten the distance between the dual-channel retailers and manufacturers. It’s also suggested that dual-channel retailer reaches a cooperation agreement with the manufacturer, the manufacturer directly to send goods to the physical retail outlets, saving the need to the central warehouse distribution center turnover intermediate links, in order to achieve win-win model to maximize the benefits.