The Optimization Of Supply Chain Logistics Cost And Inventory Cost Enterprises

Before the1980s, for the purpose of the management and control, the enterprise havebeen taken “vertical integration” management model to the companies which provide rawmaterials, semi-finished products. Under the condition of stable market environment, the useof “vertical integration” strategy is effective. However, with the rapid development ofhigh-tech, increasing competition in the market, changing customer demand,“Verticalintegration” strategy has been gradually shows its weaknesses of cannot be quick, agileresponse to market opportunity, then appeared “Horizontal integration” strategy.“Horizontal integration” has formed a supply chain that connect manufacturers,distributors and retailers. And logistics is a part of the supply chain, is a generic terms ofmaterials, services, and information’s plan, organize and control on supply chain, providesupport for supply chain management. So, it is important to improve the efficiency of supplychain’s logistics cost to optimize the logistics cost. However, the logistics cost’s “antinomy”determines that we must view logistics cost from the system point to make it meaningful.In order to achieve the purpose of reducing logistics cost of supply chain, this paperestablished a mathematical model on the basis of reviewed relevant theories to optimizetransportation cost and inventory cost. This paper assumed that a supply chain has onesupplier and one manufacturer with a single product production, constructed three supplychain logistics cost models based on single supplier and a single manufacturer, verify models’advantages and disadvantages by analyze model parameter’s sensitivity. The conclusions areas follows:（1）In the case of operating independently, logistics mode decided by market demand:when market demand is small, transportation responsibled by manufacturer is conducive toreduce logistics cost of supply chain; when market demand is bigger, transportationresponsibled by supplier is conducive to reduce logistics cost of supply chain.（2）When supplier and manufacturer make decision joined, Supply chain logistics costis the most optimal.