Based On Inventory Costs In Advance Of The Ripple Effect Study

Recently, with the internationalization of the global economy, competition among enterprises appears more and more intensive, which force the enterprises to meet the demand of customers with lower cost and quicker response. Competition among the enterprises now is mainly featured as supply chain competition whose cost takes a large percentage in the operation fee. Storage cost is one of the most important parts of the supply chain cost; therefore research on supply chain based on storage cost is extremely meaningful. In addition, lead-time is also the hot point in the research of supply chain. To a certain degree, competition of supply chain is just the competition of time. This paper combines the stated two points and analyzes the lead-time based on storage cost from a brand new angle called ripple effect. It studies on the supply chain system which includes a manufacture and a retailer.1. Manufacturer:(1) Influence of manufacturer's storage cost by its purchase lead-time.(2) Ripple effect of manufacture's supply by the change of its lead-time.2. Retailer:(1) Ripple effect of retailer's lead-time by the change of manufacturer's supply.(2) Influence of storage cost by the change of retailer's lead-time.3. Supply chain:(1) Ripple effect of various kinds of supply chain by the change of manufacturer's lead-time.(2) Comparison of ripple effect of various kinds of supply chains.It build quantitative model towards the stated three points and get the conclusion. At last, it prove the correctness of the result with data emulation, the sequences of research are as follows:At first, it researches the ripple effect when the lead-time is transferring at a proportion of 1:1, and compares the ripple effect in various kinds of supply chain caused by the same change of lead-time. It gets the conclusion that according to the environmental parameters, we can get the responses of various kinds of supply chain towards the same change of lead-time, and can set the sequence of the ripple effect.Secondly, it researches the ripple effect when the lead-time is not transferring at the proportion of 1:1, which includes magnified ripple and deflated ripple. And also, it compares the ripple effect in various kinds of supply chain caused by the same change of lead-time and it gets the conclusion about how to judge the amount of ripple effect in various supply chain.At last it proves the correctness of the result with data emulation with the built mathematics model.