The Order Strategy Of Tobacco In DLY Duty-free Store

The DLY Duty-free Store, located in the MM Airport, mainly trades in thousands of commodities, including tobacco etc. In recent years, with more travel abroad for tour and business, people’s living standard has improved significantly. The excessive passenger flows increase the tobacco quantity of DLY Duty-free Store, leading to the increase of order quantity of tobacco. Because the tobacco management method in order of DLY Duty-free Store is unscientific, along with the periodic and quantitative order strategy, the long applied method results in high quantity of storage, even serious overstock. At the same time, the prediction of market demand is not accurate, which brings about shortages of some tobacco products and severely impact the regular sales. Facing the ever growing demand of the market and providing the decision-making basis for the order management of tobacco are urgent problems in DLY Duty-free Store. The major work and innovative achievements of this paper are as follows.According to the percentage of sales value, the tobacco of DLY Duty-free Store can be classified into staple merchandise group and non staple merchandise group. Based on the present situation of order management, analyses the order management for tobacco of staple merchandise group and non staple merchandise group in DLY duty-free store, then summarizes the problem in order management of tobacco. From the tobacco of staple merchandise group and non staple merchandise group, choosing the typical tobacco of domestic and overseas brands in staple merchandise group and drawing the graph of warehouse and inventory through the warehouse and inventory table, analyzes the curves of warehousing, sales and the balance state. The result shows that the tobacco of staple merchandise group is with the big order quantity, and the irrational order cycle, which causes a high inventory and a heavy backlog. With so many kinds, the tobacco of non staple merchandise group sells less, and is with the small order quantity and the irrational order cycle, in low stocks, even has no safety stock, which causes the loss of shortage owing to the out of stock and the increase of cost for the replenishment.Based on the problems of order management of tobacco, DLY Duty-free Store wants to establish the order optimization model in staple merchandise group and non staple merchandise group, and then raises the order optimization strategy. For tobacco of staple merchandise group, establish the EOQ model with safety stock, then give the order optimization strategy. The result shows that the order strategy can decrease the inventory pressures effectively and reduce the inventory costs. For tobacco of non staple merchandise group, establish the order model with random demand, then give the order optimization strategy. The result shows that the order strategy can decrease the loss of shortage and reduce the cost for the replenishment.