Research On Reasonable Inventory For Non-stationary Demand

With the scientific and technological progress and increasing competition, product life cycles are getting shorter, the type and quantity of products are becoming more and more, companies are facing increasing market uncertainties, user demand becomes unstable, which bring greater challenges to companies for inventory management. Most products demand is showing greater volatility. Companies need to develop appropriate inventory method for this demand situation, in order to improve customer satisfaction. Facing the non-stationary demand, companies need to consider how to control the inventory to meet the demand, and also companies need to use the resources rationally to make reasonable inventory decisions within the enterprise resource capabilities. Reasonable inventory not only can reduce the amount of funds for the companies but also can enhance their market competitiveness and ensure a leading edge in the rapidly changing market environment.Now, there is not strict definition of non-stationary demand in academia. Firstly, this paper defines the concept of non-stationary demand, and sums up the common demand distribution type. Second, commonly used method is to be regarded non-stationary as deterministic demand. Although this method can be certain of inventory control, the overall effect increases with the increasing demand difference, the risk of shortage increases with the rapidly changing and fluctuating demand which can help little effect on the business. It is still lack of an effective inventory control method for the non-stationary demand. So the paper puts forward research ideas, the paper researches on multi-products for non-stationary demand inventory control in a multi-cycle way, which not only taking into account correlation of products, but also the financial constraints and storage capacity in order to minimize inventory cost and meet the demand. Finally, the paper verifies the feasibility of this method in numerical examples, which satisfies all constraints and achieve the minimum inventory cost.The main innovations points of this paper have two aspects. First, for general inventory control for non-stationary demand, the paper proposes the constraints of financial considering the limitations of corporate resources, in order that the quantity can be adjusted according to demand. Second, in the study of method for inventory control, the paper consider a multi-product and multi-cycle while ordering combined, and take the correlation between the product into account, which provide a reference for the development of enterprise policy.