The Control Of Multi-echelon Inventory Cost Faced To Supply Chain Management

The inventory cost is a primary component of the supply chain cost, which is the key both to exert collaboration and to perform the integrated management. The quantity of inventory influences not only the individual cost but also the whole chain performance. Therefore further studies on the collaborative strategies have theoretical and realistic significance. The method for multi-echelon inventory optimization and control must be adopted for the sake of the entire supply chain optimization and control. How to effectively control the multi-echelon inventory system is one of the key factors to improve the operational efficiency of supply chains. Therefore, it has great meanings to study the problem of inventory cost control in the supply chain management.After summarizing the traditional inventory management methods, this paper studies the strategy of inventory in supply chain management.The first part gives an introduction of background, meaning and main content of research, then gives the reviews of inventory at home and abroad . The second part describes the basic inventory theory, emphasizes the importance of inventor cost. Then make further research to the two kinds of supply chain inventory management techniques contains vendor managed inventory and joint managed inventory on the base of single inventory management analysis and inventory conception; And have analyzed their range of application, advantages and disadvantages. The third part introduces the cost, control strategy and system structure of multi-echelon inventory which faces to supply chain management. The forth part introduce builds a two-echelon distribution inventory model with a central warehouse and multiple retailers, where the demand of the retailers submitting to Poisson distribution and lead time submitting to Normal distiibution. The objective is to minimize the average cost of two-echelon distribution inventory. The fifth part mainly focuses on the issue of modeling and simulating for a two-echelon distribution inventory system in a supply chain environment under uncertain demand. Hence model minimization problem is simulating and analyzing by which the optimal ordering critical point are determined. In the end, this dissertation is summarized and further researches directions are shown.