The Decision Support System Of Collaborative Replenishment In Tobacco Industry

The collaborative replenishment between cigarette producers and distributors inChina’s Tobacco Industry is special because the replenishment decisions not only dependon the market demand, but also are under the control of Tobacco Monopoly System. Bothproducers’ and distributors’ stock are controlled through stock-to-sales ratio. Decisionmakers shall take stock-to-sales ratio, market demand and production in consideration toformulate the replenishment plan. It’s a complex decision problem that can be solved byscientific methods and tools under the information asymmetry between producers anddistributors.This thesis studies the method of controlling replenishment decisions by usingstock-to-sales ratio, and develops a decision support system to achieve thedecision-making model. With both producers’ and distributors’ stock-to-sales ratioconstraints, the model can figure out the quantity and points of replenishment based on thetraditional inventory control model. Considering the inventory costs of both producers anddistributors and the out of stock costs, the thesis studies the relationship between the totalcosts and stock-to-sales ratio. Then, it analyzes the basic demand of decision supportsystem through the research on Henan Tobacco Industry Company and designs theframework of decision support system based on the Web. Finally, the thesis develops aprototype system to achieve the decision support function of making real-timereplenishment program, month replenishment plan and setting stock-to-sales ratio. Theresult can enhance the efficiency of making collaborative replenishment decisions thatmeets the demand of market and the restriction of national plan.