Optimization For Inventory Control Of Baisha Logistics Supply Chain Networks

Inventory control is an important part of the supply chain management, and has a significant impact on the coordinated development of the enterprise itself or even the entire supply chain. Superfluous inventory will increase the cost of the product, cause funding sluggish, affect rational allocation and optimization of resources and hinder enterprises to improve management; insufficient inventory will cause a decline in the level of service, affect the production process, increase ordering (production) costs. How to reduce inventory costs and achieve effective control of the supply chain inventory have long been topics of common interest of the enterprise managers and scholars. Inventory control of supply chain involves many aspects. It is necessary to research various objects in the supply chain from different points of view, by the use of the new method. And that will contribute to coordination optimization of all members in the supply chain and to better serve the practice. This article is a study in this context, system dynamics and proportional integral control method is used in combination to study optimization method of inventory control in the Baisha logistics co. ltd. under supply chain environment. The research content is as follows:First, guided by the demand of a new inventory control mode of Baisha logistics co. ltd, this paper analysis the Baisha company on current inventory control analysis from inside and outside perspectives, and then described the causal loop diagrams and system dynamics flow diagram by using the system dynamics method. Thus, according to the investigation of Baisha logistics co. ltd, Vensim is used to emulate the current inventory control mode. Analyzed excessive the Baisha logistics current inventory control mode in the presence of the supplier and retailer inventory, inventory fluctuations, retailers stock rate high. Through the analysis, obtained issues such as suppliers and retailers have excessive stock, large fluctuations in inventory retailers and high shortage rate in the current inventory control model.Secondly, this paper introduces a proportional integral control method. The method combining the advantages of proportional control and integral control can effectively eliminate the long shocks in integral control, improve the response speed of the entire system and reduce inventories fluctuations of each node in the supply chain. According to the previous analysis on the current inventory model of Baisha logistics, a proportional integral control model of two-level supply chain inventory is designed, system dynamics (SD) and proportional integral control (PI) method is used in combination to optimize current inventory control model of Baisha logistics and inventory optimization model is build and emulated.Finally, This paper evaluate the optimization model from the angle of inventory levels, order processing and rate of shortage in order to analyze whether proportional integral control method will contribute to the elimination of inventory fluctuations, maintaining stability of Baisha Logistics and Retails’inventory, reducing retailers’rate of shortage and improving Baisha logistics and retails order processing capability. From the result, it is proved that a series of problems that exist in the current inventory control mode of Baisha logistics model is solved effectively, the theoretically "zero inventory" management is achieved, inventory costs is reduced and the speed of response to customers is improved. This will provide a guarantee for the realization of the target of "three-hour service and reference for the Baisha logistics co. ltd.