Research Of Retailers Ordering Strategy Based On The Service Level

Retail is an industry which most closed to the public. In order to enhance the market competitiveness in a highly competitive market environment, retailers must improve the entire supply chain competitiveness on the basis of ensuring customer service levels from the perspective of the entire supply chain around the market, retailers, distributors, manufacturers, suppliers. Then retailers could try their best to serve the supply chain as well as improve their own interests.Take the seasonal perishable products retail market for example, combing classic newsboy model, the paper study the order decision problem under conditions of certain service levels for apparel retailers. Since the classic newsboy model is a first order and sales newsboy model, and in practice, there often exists a big difference between the model and the reality, the paper studies the classic newsboy model first under the conditions of meeting customers' service levels combing the characteristics of the perishable products retail market after neatening the classic literature systematically, and draw a conclusion about the relationship between the service level, the optimal order quantity and the maximum expected profit. After this, the paper further builds a secondary order and sales newsboy model, gives the optimal order quantity calculations formulas, carries on sensitivity analysis for each parameter, and also draw a conclusion about the relationship between the service level, the optimal order quantity and the maximum expected profit. And then it compares the relationship of two models between the optimal order quantity and the maximum expected profit. Finally we achieve the above conclusions with intuitive graphical representation by programming intuitive graphical representation and obtain a good result.