Research On Models Of Collaborative Replenishment In Retail Trade

In modern society, with the development of economics and technology, retailers couldn't cope with the increasingly fierce market competition by themselves. So, in fact, the competition between retailers is the competition between supply chains. Inventory management is an important part for retailers. They should work together and share information to improve the ability of demand forecasting. Then they can make the best inventory strategy and get more competitive advantages. There are many theories about inventory management, including Vendor Managed Inventory, Jointly Managed Inventory and Collaborative Planning Forecasting and Replenishment (CPFR). This paper takes the advantage of CPFR to make research on collaborative replenishment based on collaborative planning and forecasting.At first, the paper summarizes the status of researches on inventory management and focuses on the core concept, operation mode, advantages and disadvantages of the theories. In the introduction, the paper puts emphasis on the origin, characters and the theoretical model of CPFR. Then the paper shows the status of inventory management of retailers, including the characters of it, the significance of it and the common disadvantages of it. Second, this paper relies on the core concept of CPFR to do research on collaborative replenishment. It forms the models of collaborative quantity of replenishment and collaborative time of replenishment based on collaborative planning and forecasting. Then some simple examples are used to prove the function of the models. Finally, the paper carries out simulation by Matlab to find out changes of the inventory cost of supply chain before and after the models being used. Therefore the function of the models to reduce the inventory cost proved to be right.The paper designs models of collaborative replenishment based on the theory of CPFR. On one hand, it makes the theory more comprehensive and plays an important role in the development of the theory. On the other hand, it forms models of replenishment for corporations in the supply chain which can reduce the inventory cost and increase the revenue of the supply chain. In this condition, the paper has big significance for both theoretical research and management practice.