A Improved Study On Replenishment Strategy Of Company A Based On CPFR

Because of the uncertainty of the demand and the superficial cooperation between retailers and suppliers, high inventory and goods shortage occur at the same time. Retailers can’t solve the inventory problem involving the whole supply chain by themselves. Therefore, with the development of the supply chain collaboration theory, Collaborative Planning Forecasting and Replenishment (CPFR) springs up gradually.Based on the background and the review of correlative theories, this paper attempts to study the replenishment strategy in the process of implementing CPFR. Firstly, this paper analyzes the current situation of replenishment management of Company A then finds the problems and reasons. And then, we do the demand forecasting with time series analysis method and multiple regression analysis method. By comparing the forecasting results, we choose causal relationship analysis method as the collaborative forecasting method. Based on the collaborative forecasting, the collaborative replenishment model is built by using the liner programming method and a case is introduced to determine the replenishment strategy. We not only validate the model but also do the sensitivity analysis to study the influence of the demand and the satisfaction rate on the supply chain stock-holding cost and the order quantity. At last, according to the implementation process of CPFR, we give Company A some advice about implementing the collaborative replenishment.The results suggest that the collaborative forecasting can improve the accuracy of demand forecasting, collaborative replenishment can save the supply chain stock-holding cost, strengthen the competitiveness and the harmony of the whole supply chain and improve the customers’ degree of satisfaction. The study result of this paper has a certain reference value for retail business to implement collaborative replenishment and to solve related inventory management problems.