Research On Inventory Decision Model Of Two-echelon Supply Chain With Returning For Resale

In recent years,with the rapid development of the economy of our country,people’s demand for various consumer goods such as home appliances,electronic products and clothing have increased.With the rapid increase in demand,the return of products from customers also increases and remains at a high level.To handle the returned products,companies generally have two processing methods.Firstly,the unpacked products can be sold as new-brand products after secondary packaging.Secondly,the damaged products can be sold again after being recycled,processed,and assembled by the manufacturer.In order to improve service quality,improve reputation,and reduce business-operating costs,a reverse logistics model that products return from consumers to manufacturers has gradually received widespread attention.In the reverse logistics model,inventory management is a very important part.Reasonable and effective inventory control can not only recover returned products,reduce pollution,develop a circular economy,and improve the company’s social reputation,but also reduce inventory and production costs for the company.Additionally,it can improve service quality.However,compared with traditional logistics,there are many uncertainties in reverse logistics inventory control,which deepens the complexity of the research.On the basis of existing research,in order to solve the problems encountered by companies in reality,this paper proposes a two-echelon supply chain system,which contains manufacturers,distributors and sales shops.In this system,multiple demand points are considered,and companies allow customers to return goods so as to optimize the traditional inventory decision model of two-echelon supply chain.When demand and returns are deterministic,companies cannot control the best time for ordering goods and processing reverse-returned products,which leads to the problem of increased costs.Considering the different types of commodities operated by the company,this paper proposes a deterministic inventory decision model of two-echelon supply chain,which contains single-type commodity model and multi-type commodities model.Similarly,for situations where demand and returns are uncertain,companies do not know how to order goods and deal with reverse-returned products,which leads to the problem of increased costs.Based on the different types of commodities the company operates,this paper proposes random inventory decisions of two-echelon supply chain,and establishes two random inventory decision models of two-echelon supply chain,of which one contains single-type commodity and the other contains multi-type commodities.Finally,case calculation and analysis are carried out with the company’s actual operating data.In this way,we find out the main factors that affect inventory costs,and provide the company with an inventory decision optimization plan.From the results of the calculation example,it can be seen that the inventory decision plan can effectively reduce the company cost.