Research On Inventory Control Policieswith Consideration Of Loading Capacity And Storage Space

For manufacturing enterprises, the inventory cost accounts for a large portion inthe totalcost. How to effectively reduce the inventory costby some inventorycontrol policiesis of practical significance.This paper researches on optimal inventory policiesbased on the inventorymanagement practice in a manufacturing enterprise. The planning horizonof thisproblem is finite, and the demand in each period follows a discrete distribution. Theobjective is to minimize the inventory cost, including thetransportation cost,theinventory holding cost and the penalty cost.In this paper, three different inventory models are proposed based on (s, S) policy,namely the uniform (s, S) model, the dynamic (s, S) model and the storagespace-restricted model.Forthe uniform (s, S) model, all periods take the same (s, S)policy, while in the dynamic (s, S) model,eachperiod can adopt different (s, S)policies.The dynamic (s, S) modelis an extension to the uniform (s, S) model.For each model,threepolicies are adopted, i.e., the strict (s, S) policy, the (s, S) policy with parameter rand the optional (s, S) policy.In contrast to the strict (s, S) policy, the (s, S) policy withparameter r uses parameter r to control the number of employed vehicles and issuitable topractices.The optional (s, S) policy is a furtherimproved version byoptionallydeciding whether to execute the (s, S) policy with parameter r for eachperiod. The storage space-restricted model considers the situation that the enterprise’sstorage space cannot meet the storage space requirement for all parts that need to bereplenished.For each inventory policy, a descriptive case and a practical case are tested. Fromthe results of numerical analysis, wecan make the following conclusion that a rationalreplenishment policy can significantly reduce the inventory cost.