Inventory Model Study Of Apparel Products With Variable Sales Prices

For a manufacturing power like China, apparel industry plays an extremely important role in industrial distribution. However, with rapid development of the economy, there has been constant advancement of manufacturing technology and process, and consumers pay more attention to fashion and popular factors, which transitions have enabled life cycle of dress goods to be shortened comparing with before, enterprises operating apparel products have encountered a series of operating and managing problems, while inventory control for many cases embodies a concentrated reflection of various problems. The effect of inventory control will directly affect the profitability and competitiveness of an enterprise. Researches by far have achieved certain results in quantitative analysis and direct application of economic lot-size model, but they are lack of effective and detailed instruction on apparel enterprises. Study will be made in the thesis to supplement and extend the inventory model of apparel products; and certain inspiration and assistance will be provided to operators and especially retailers of apparel products with respect to inventory control, so as to meet the objective for increasing enterprise profit.The thesis begin with analysis of apparel product features and reasoning of mass stock among apparel enterprises, foreign and Chinese studies on apparel products stock are reviewed and summarized, the study method for solving inventory problem of deteriorating items is used to establish inventory control model of apparel products.It is found based on studying the features of apparel products that the devaluation feature of apparel products will lead to decline of product value, while devaluation rate has negative correlation with demand, so the influence of inventory level on demand of apparel products can't be neglected, these features determine that inventory issues of apparel products can't be solved by simply using economic lot-size model, scientific classification of apparel products is the foundation for establishing apparel inventory. It is observed from the features of Chinese apparel industry and the inventory status of Chinese apparel enterprises that the traditional inventory control method and simple method for solving problems is one of the important reasons for constant mass stock.The related theories and methods of inventory management and operational research are adopted to establish inventory model of apparel products. The assumption of constant sales price in the current EOQ model is improved, with variable sales price, assuming that demand of apparel products is subject to influence of inventory level with demand factor as exponential function of inventory level, and demand remain constant as inventory drop to certain level; considering the devaluation feature of apparel products, assuming that devaluation rate has negative correlation with demand factor, which means when demand factor is high, devaluation rate tends to be relatively low, while demand factor is low, devaluation rate tends to be relatively high, with profit maximization of apparel retailers as the objective function, an apparel product inventory model with inventory affecting demand factor is established. The existence and uniqueness of optimum solution is proved, account case is provided to prove the effectiveness of the model, besides, sensitivity analysis on each parameter is made to study the influence degree of each parameter to inventory strategy. Lastly, considering more general cases, the model is extended by allowing shortage and limited supplementation factor, and numerical example is adopted to explain the effectiveness of the model.