Inventory Management Optimization Of BL Commerce Company

Coinciding with the development of retail, to satisfy the demand of consumers in time has become one of the focuses of the competition. Then the commerce company emerged, aiming at selling, warehousing, distributing and transporting for the retailers, and inventory management has become emphasis among all the functions. However, commerce company generally has weakness in scale and capability, lacking scientific and reasonable methods of inventory management, which causes stock taking up too much funds, low turnover rate and poor service quality.In this article, BL commerce company is taken as a case to analyze and discover problems in inventory management. A optimization program is proposed via both math and simulation methods, and also examined in the last part of article.Starting from the analysis of demand, the three main problems in inventory of this company will be discussed. Then multi-ABC classification is used to classify the inventory. According to the results of inventory classification, (Q,s) policy and (T,S) policy are separately applied to deciding the ordering policy of all kinds of inventory. Then simulated by Flexsim, inventory A achieves a higher turnover. And by considering shortage cost, inventory B&C achieve lower total cost.In fifth chapter, the optimization program is examined in inventory turnover, level of service, inventoryaverage cost, rate of return and scraprate, and finally turns out to be feasible and effective.