Supply Chain Distribution System Inventory And Order Model And Algorithm

With the rapid development of information technology and the integration of global economic, individual firms no longer compete as independent entities, but rather as integral parts of supply chain linkage. In supply chain, distribution system is the most important linkage, which is not only the sign to measure the level of supply chain management but also the most key factor to determine the competition capability of supply chain. Therefore, it's meaningful in theory and practice to coordinate the relation among manufacturer, distributor and retailer and to study the optimization issue on inventory and order of distribution system from the angle of quantitative analysis.This article deals with the optimization issue on inventory and order of distribution system in supply chain. The following parts are included.Firstly, the theory on distribution system in supply chain is overviewed. The related basic concepts on supply chain management and distribution system are introduced. The present research conditions of inventory and order model and the application of the operational research in distribution system are summarized.Secondly, the inventory and ordering strategy in the multiple product distribution system on condition of price discount are studied. As to the two situations of resource binding and non-resource binding, the corresponding profit optimization models are established respectively and simulation algorithm is put forward on the basis of the improved genetic algorithm. The result proves the effectiveness of the algorithm and the application potential of the united ordering.Thirdly, on the basis of optimization research of the distribution system that the customer demand is stochastic, the effect of demanding price-elastic upon the inventory and order strategy in the distribution system is considered further. At first, in a supply chain contract the united policy on price discount is discussed, the profit optimization model of the distribution system made up of one distributor and many retailers is set up; a solution strategy of the model is raised through genetic algorithm. Then, aiming at the cooperation of the vender management inventory (VMI) in the circumstance of supply chain management, the profit optimization model is established and the polynomial algorithm is designed. In the end, the evaluated example proves that the model is reasonable and the algorithm is effective.