Research On Multi-echelon Inventory Control Model And Algorithm Of Supply Chain

With the globalization of economy, the traditional competition between singleenterprises has evolved into that of supply chain. Inventory control is one of the mainactivities of the supply chain management，It directly influences the implement ofappreciation of chain value for supply chain, so the study of supply chain inventorycontrol is very necessary. The traditional inventory control study mainly focused on theinventory optimal for a single enterprise, however the supply chain is an integratedsystem, so the traditional inventory control method can only optimize inventory of thelocal supply chain. Supply chain multi-echelon inventory control which aims at theoverall optimization of the supply chain, came forth based on the traditional single-stageinventory optimization control, it ultimately maximizes the overall effectiveness of thesupply chain through the rational allocation of supply chain inventory.First of all, this paper detailed analysis on the internal structure and factorsinfluencing the cost structure of supply chain multi-echelon inventory were given.Based on the single stage inventory model and the supply chain two-echelon inventorycost model, the paper established the multi-echelon inventory cost model integratingproduction, supply and marketing, which included several suppliers, a manufacturer, anumber of distributors. Secondly, by the analysis and comparison of the methods forsolving the inventory model, the paper lastly selected the immune genetic algorithm tosolve the supply chain multi-echelon inventory model, and designed the correspondingimmune genetic algorithm. Taking B product of A company as an example, this papercombined the established a multi-echelon inventory cost optimization model and thedesigned corresponding algorithm with the example, employed MATLAB simulationsoftware to seek the Optimal solution. Through the analysis of the results of theexample, the paper verified the validity and rationality of the inventory costoptimization model and algorithm established in the paper.