A Study On Two-level Inventory Control Of A Enterprise Base On System Dynamics

Manufacturing enterprises has been troubled by inventory problems for many years, and in practical, the quality of inventory management will affect the survival and development of manufacturing enterprise directly, especially under the condition of the global economic crisis, the importance of inventory management is more important than ever. Actually, Inventory is the hopeless choice for the manufacturing enterprise, no matter in the theory or the view of practical point. The manufacturing enterprise did not have the ability to predict the change demand in future market. So it will be faced with the risk of fluctuations in demand, then inventory was created by enterprise mangers to cope with external market changes as an indispensable means of business operations. But at the same time, this means followed by another problem, inventory will occupied some business capital, increase the operating cost of enterprises, that is to say, inventory has become one of the major burden of the manufacturing enterprise. From the two perspectives what we have discussed above, Inventory is a contradictory combination, in this sense, doing some research on inventory control is not only necessary but also have some actual meanings.This paper study two-level inventory control model of A enterprise using methodology of system dynamic.This paper illustrates some related theory about inventory control and system dynamics. After a brief introduction some methods concert inventory control, make the idea clear that use system dynamic for inventory optimization is suitable and applicable. And the system dynamic model about A enterprise is created after analyzing the customer demand and inventory. Based on the result of stimulating, we'll get the inventory way of A enterprise.