The Research Of Logistics System Control Based On Stochastic Periodic Ordering Model

Supply chain management has become the key of competition in the world while inventory control is the most important issue in supply chain management. Many companies use periodic ordering method to control inventory, however they are bothered by the crucial factors, lead time and demand, which are still uncertain and stochastic.The main content of this paper is researching stochastic periodic ordering model and try to find some solutions to make it more effective. We start thinking from design requirements of stochastic periodic ordering model, and then consider actual conditions of manufacturing operations to search the key factor of problems and a reasonable solution. After this, we'll introduce popular inventory management theories including EOQ model, periodic ordering model, newsvendor model, and stochastic ordering model, and then analyze the characteristics and applicable scope of each model. Due to the complicated actual situation, there is no perfect solution. I think we should combine inventory management theories with simulate ideas, and reduced the overall complexity by immobilizing stochastic factors which can be applied to actual operation management.In this paper, based on numbers of inventory management theories, I will firstly analyze and interpret the design idea of stochastic periodic ordering model, then use Prof. Simchi-Levi's stochastic (s, S) model as assessment criteria for reference, and propose two models, a periodic ordering model with pre-fixed demand and stochastic lead time and a periodic ordering model with the pre-fixed lead time and stochastic demand. After this I will make a detailed analysis on the design idea of these models, and complete simulation program through the variable setting, important functions design and implementation of simulation algorithm, and ultimately verify the applicability and practicality of two models by numbers of simulation experiments under several realistic situations.The main contribution of this paper is that I designed two periodic ordering models which could be conveniently used in most situations and are very effective in controlling inventory and shortage rate.