Several Stochastic Inventory Model Based On Supply Chain

With the increasingly competitive market,more and more enterprises introduce the concept of supply chain management thinking. Inventory management in supply chain management environment can have rapidly response to customer demand, with an increasingly important position. Some scholar even takes logistics management as static or dynamic inventory management. Inventory already infiltrates logistics system's every link. So, scientific inventory is the core of modern enterprises manager eagerly solving.Traditionally, the various links in the supply chain management of their respective stock, seeking to maximize their own benefit. The direct consequence is that the more upper of the supply chain, the demand more unstable, leading to "bullwhip effect"(Bullwhip Effect) production, eventually increasing the overall cost of inventory in the supply chain, affecting the overall optimization of the supply chain operation, weakening its overall competitive advantage.To change this situation, a new supply chain inventory management thinking----(Vendor Managed Inventory, VMI)appeared. VMI is vendor-managed inventory for customer, is an inventory management tactics and management model according to customer's sales and inventory level for replenishing. In this way, the upstream of the supply chain no longer delivers goods and replenishes the stock according to the order of the downstream enterprises, but he orders on the basis of overall grasp of the demand of the downstream, making its own inventory management and ordering more rational, thus enable the supply chain reduce the cost of supply and demand parties. In VMI, inventory particularly the stochastic inventory control is the crux of raising supply chain management and lowering management cost.Based on the above analysis and appraisal, I choose"Several Stochastic Inventory Model Based on Supply Chain"as the research issue. The paper summarizes the present of VMI model, analyses the background of VMI and necessity of choosing VMI. Suppose demand time-varying, emphatically research the VMI model in two-level supply chain, considering more realistic economic management background, building some VMI models involving partial backlogging, time-limited free back-order, deterioration, and so on.Concrete works as follows:1. Expand fixed demand, partial backlogging VMI model to time-varying, partial backlogging VMI model. And based on the expand model, analyze the sensitivity of key parameters. 2. Expand fixed demand, partial backlogging VMI model to time-varying, time-limited free back-order, partial backlogging VMI model. And based on the expand model, analyze the sensitivity of key parameters.3. Expand fixed demand, partial backlogging VMI model to time-varying, deterioration, partial backlogging VMI model. And based on the expand model, analyze the sensitivity of key parameters.The numeric example shows that service level, partial backlogging rate time-limited free back-order, deterioration and so on, affect the costs of VMI system in their own ways. The theoretical evidence is provided for the VMI system to make better management decisions.