Research On Inventory Model Of Grain Logistics System

In modern enterprises, diversities of commodities account of large sum of current fund. Consequently, it's important for the operation of modern enterprises to balance stock cost and profit and reach the best match between them on effective inventory management.Recently, the problem of deteriorating items inventory has induced great attention. Grain is also one of them and shares the same inventory model. To such items as grain, we should take more reasonable inventory management plans for the minimum of the inventory loss. So it's rather necessary to study the inventory problem of deteriorating items and establish more realistic inventory models.This paper defines logistics, logistics system and makes a brief introduction to the grain logistics. Then it summarizes the previous study on inventory theory and the theory of deteriorating items in particular. The following three aspects are included. Firstly, we research the optimal production- inventory strategy with lost sale cost. Accounting for the lost sale cost, the corresponding total cost function is given and analyzed. Secondly, an analysis for the optimal inventory control strategy of grain is studied. For the distinction of grain stock, we find the order point. The objective function about total cost is established by considering the grain enterprise's inventory cost comprehensively. Then under the restriction of service level, the optimal order quantity is solved. Thirdly, we research the optimal inventory-sale strategy in which grain is discounted during the period of fresh-keeping life to shelf life. The optimal order cycle and order quantity are solved. Then an example is given to illustrate the theoretical results. In the end, it draws conclusions and depicts the development prospect of the inventory theory of deteriorating items as grain.