Research On Three-echelon Inventory Strategy Under Stochastic Demand

As the global economic integration and the development of market, the cooperation inregion and range between enterprises become wider and wider. The competition also becomesmore complex and cruel. Therefore, in order to face the cruel competition, enterpirsesstrengthen their own competitive power by cooperating with other enterpirses, which createthe supply chain. Thus, the competitions between enterprises become the competitionsbetween the supply chains. And inventory as one of the important contents of supply chainmanagement, has more and more got a common attention of academic and corporate.Atfer analyzing the background and significance of inventory management under theenvironment of the supply chain, This paper on the basis of the summairzes of the presentresearch at home and abroad will focus on the three-echelon supply chain inventory systemunder stochastic demand. First of all，paper theoretically analyzes the source and forms of thestochastic demand under the environment of supply chain, the basic theory of inventorymanagement and the corresponding inventory management strategy in the environment ofsupply chain and the introduction of the work pirnciples and the supeirority of geneticalgorithm. Secondly, this paper determined the research object—three-echelon supply chaininventory system ‘All of the enterpirses in the system use the continuity of inventory (R, Q)inventory strategy, the whole system use the non-center multi-level inventory control strategy.Then to analyze the demand situation of each enterpirse faced and the condition of the leadtime, establishing the inventory model each cost center. Regard the minimal cost as theobjective, and make a certain constraint conditions to establish the optimization model of thethree-echelon supply chain inventory system. Finally, with genetic algoirthm, paper will givethe final optimization strategy.