Study On The Inventory System Optimization For Imported Products Of A Company Based On Space Cluster Effect

This paper researches on centralization of the inventory system for imported products of A Company. The purpose is to compress the inventory quantity and its subject belongs to the area of inventory control in logistics planning.Imported products play vital roles in the sales of A company. They are of high value and with great fluctuation in demand and supply, which leads to the necessary of preparing a lot of inventory for purpose of responding promptly to the demand from customers. Moreover, A company has been carry out the module of decentralized storage system. and its inventory spreads over 4 regional warehouses. To meet the demand of order on time, A company has to prepare inventory for most kinds of the products in every warehouses. Therefore, the inventory is kept high level and costs a great deal of money to maintain. To solve this problem and cut down cost of the company, a idea based on Cluster Effect is raised to optimize the storage system. By setting up mathematical model and running out the result, it provides great support to manager for making decision on the action of optimization.This paper consults to professional researches on inventory control from both internal and international experts. By analyzing storage system planning constraint conditions including the limit in quantity of storage locations and that in storage capacity, as well as whether it requests for the same location of centralized warehouse for multi-kinds of products, tow modeling idea adaptable to A Company is formed, and the corresponding models on the storage system optimization is established. These two models objective is based on Space Cluster Effect. Through finding out suitable products to make the centralized storage, to achieve the target of compress inventory level and gain best total cost.After modeling, the optimal inventory planning results can be obtained by using Excel software. The results of simulation as well as actual use by A company shows the optimization idea can cut down inventory and logistics cost markedly which will be helpful to companies to achieve target of cost saving.