Simulation And Optimization Of Inventory Based On Genetic Algorithm

With the increasing fierce market competition, supply chain management has become one of the most important primary management mode of modern enterprise. However, the inventory management mode of different enterprise supply chains cannot be integrated with each other, the integration level of system information is relatively low. Because each enterprise unit adopts the method of "divide and rule", the inventory cost is very high without the system integration. Since cost competitiveness has become one of the most effective means in the modern society, and meanwhile inventory cost is one of the most import part which takes approximately 30% of the total cost, so the reducing inventory cost is the key of supply chain optimizaion. Most research before the multi-stage inventory system considers this as an internal coordination problem. In the present, in order to control inventory costs, companies have begun to set up Co-ordination Centre,to construct a joint procurement / transfer cargo strategy model, to form the objective model through the establishment of supply chain inventory cost objective function, then under stochastic demand,to run the simulation optimization model,the goal is to find the best business joint procurement / transfer cargo strategy making inventory costs decrease.This article first introduces the background of inventory management, analyzes the traditional limitations of existing inventory control,computer simulation and optimization theory, explains the construction method of the simulation model and optimization algorithm. Then in order to solve the problem of multi-level inventory , to satisfy the specific requirement of products, to achieve profit maximization with the help of joint procurement / transfer cargo strategy adopted by multi retails, and to ensure the customer satisfaction rate, this paper is aiming to discover a joint procurement / transfer cargo strategy to make the inventory cost lower than that of separate ordering.This article also elaborates the design ideas of joint procurement / transfer cargo strategy model,the definition of simulation events,the implementation process of genetic algorithms etc..Finally this article uses witness modeling tools to realize the simulation optimization model, verifies the feasibility of the model through examples, compares inventory cost between combined order policy and Individual order policy, the inventory cost problem which customer satisfaction rate meets to 100% and also analyzes the issue of optimal transshipment between retails. The results show that the joint procurement strateg is better than the separate ordering strategy, the inventory cost that allowed out of stock is lower than that of not allowed out of stock, the transfer cost between retails is also much lower than that of direct ordering.Thence, this simulation optimization model can achieve the goals, and prove to be a decision support for co-operation between retailers.