A Research On Stock Decision Method Under The Saving Space Limited System

In recent years, along with the vehemence of market competition, how to make the stock decision of product to become a hot topic on which the domestic and international scholar focus in order to low cost of products,.First, This essay will mainly introduce the basic knowledge and method of stock control and explicit importance of the stock in the business enterprise. Secondly, it will introduce the classic model (EOQ) of the stock control, of which the sensitivity will be analysis and discussed.The main idea of this essay will give a discussion on six kinds of different stock projects under both the circumstance that the demand and period are confirmed in advance, and the circumstance that the single product which storing space is limited. In another words, it is forbid to be out of stock under less order quantity (it is requested to store goods according to the stock capacity, to rent warehouse to store the goods and to invest to extend a warehouse) In another words, It is permitted to be lack of goods, to complement the goods and to make stock of goods continuously. Then this essay will also make a contrast between the total cost and service level to the above six kinds of stock decisions and draw a final conclusion that making stock continuously is the best stock decision, which will be able to provide some basic knowledge for the decision maker when they make some stock decisions.