Inventory Control Methods For Short Life-cycle Products

Short product life cycle management focuses on inventory problems. Accurate demand forecast is the premise of good inventory control performance, and equally important to the inventory control methods. Therefore, the demand forecasting and inventory control research of short life cycle products have both theoretical and practical significance.On the aspect of demand forecast, the paper describes the BASS model and its development, studies the structure and application of the model, and improves the BASS model by adding pricing factors based on the practical environment. Illustrative examples forecasting results show that the improved short-BASS model is superior to other methods in the MAD, RMSE, MAPE, and other error indicators.On the aspect of inventory control, this article combines the classical inventory control methods and the characteristics of short life cycle products to find an inventory control method in line with a short product life-cycle environment to determine the optimal ordering time and order quantity. And the method also reduces the obsolete stocks and lack stocks.