Reseach On Optimization Of Inventory Controlling And Transportation Decision-making For Timber Enterprises In Fujian Province

Recently, the consumer demand for wood products in Fujian province has presented a relative speedy growth momentum with a rapid development in forestry industry. Under the tough market competition, the timber enterprises are encountering enormous challenges and opportunities. Currently, the level of logistics has been the key factor of the advantage in the market competition as a result of the production levels gradually converge in the timber enterprises. However, there is phenomenon of attaching importance to the production and despising the circulation in such enterprises for a long time, which lead to insufficiency of understanding and research. As a consequence, the great majority of timber enterprises are in a traditional and out-dated logistics management mode with a high cost and low efficiency. Reducing the cost of inventory and transportation has been the dominant factor of controlling the enterprises’　logistics cost for a long time. And for the timber enterprises in Fujian, the inventory and transportation in logistics system, which are still made decision and operation as conventional, result in high logistics fees and low logistics level as well. Combined with the demand of Fujian timber enterprises, under the circumstance of limited fund and non-substantial improvement in technology standard, the optimization study in inventory control and transportation decision-making in the timber enterprises is a problem being worth studying and figured out urgently, which boosts to minimize the logistics cost and improve the logistics level.This thesis treats Fujian province as the research scope, and treats both inventory and transportation in Fujian timber enterprises as the objects of study with a combination of quantitative and qualitative analysis as well as application examples, which aims to minimize the logistics cost. And finally choose the topic of The Inventory Control and Transportation decision-making Optimization in Fujian timber enterprises.This thesis, under the guidance of system theory, analyzes the current situation and problems. Combing the methodologies such as MRP, EOQ, it discusses how to control inventory and optimize the transportation decision-making in Fujian timber enterprises with the knowledge of operational research. Firstly in the part of inventory, this thesis uses MRP to optimize the inventory of timber enterprises according to the master production schedule and product structure relationships in demanded-enterprises; Additionally, with the consideration of the existence of both continuous and discrete random demands in reality, the thesis chooses a method of joint inventory control with the third party logistics enterprises basing on the EOQ model to set up the optimization model. In the second part which in terms of the transportation, by setting minimizing the transportation cost as the objective of the optimizing system, three models are under discussion in my paper, including direct delivery, delivery with relays and mix delivery. To consider both these major issues, the optimizing model is established, for the inventory control and transportation decision-making of these timber enterprises in Fujian province.Lastly, in my dissertation, reality analysis respecting to some specific timber enterprises in Fujian province is processed by using LINGO optimizing software. As a consequence, after holistic optimizing the inventory control and transport strategy of such timber enterprises, the business cost can be decreased significantly, and the efficiency of the logistics system can be highly promoted. In conclusion, optimization has a remarkable effect, which has a practical meaning.