The Replenishment And Pricing Of Inventory Model Under The Condition Of Time Varying In The Supply Chain

With the global economy and the high development of technology, Companies in china meet the global competition intensifying of resource and marketing. They have to associate with each other , forming a supply chain union to keep them competitive. The inventory management is one of the important elements in the supply chain management. It will directly impact the whole reasonable cost and the service quality. So the task of research on inventory is a long and meaningful work.The paper studies the ordering and pricing model in the Supply Chain. The strategy includes three key points: Product Lifecycle orientation, variable demand and two-level inventory. Firstly, the paper deeply analyzes the concept of Product Lifecycle and its characteristics. Then, considering the two phase of requirements increasing and declining, we could derive supplier's optimum fixed price and consumer's optimum ordering quantity through separately establishing the profit function models of both sides of the supply and demand. Finally, we explain the models through the computation example and get the results that the profits of both sides of supply and demand are increased by the time going in each period in growth phase but are decreased in decreasing phase. Besides, the ordering quantity from the part of demand and the pricing from the part of supply will be larger in the growth phase of Product Lifecycle than the time in decline phase. We find the study has the very strong reality and significance on its further development and means that a theoretical foundation is provided for both the vendor and vendee to merge their inventories together. These manifest the idea of inventory management in the supply chain and are more useful and operational.