Study On Ordering Strategy For Bioactive Material Of HD Company

Biological medicine experiences a rapid development as the emerging industry in the 21 st century. However, its matched supply management of material falls behind which can be demonstrated more concretely in the following aspects: service efficiency, information system, control of logistics quality, supply chain management. Enterprise's ordering strategy generally depends on manager's experience, thus the shortage of material is the potential risk; and it will lead to the increase of scrap cost when the material is expired. In addition, the characteristics of biological medicine which are of low reliability, high value-added, and expiration management make it emergent to establish a suited material ordering strategy to satisfy the needs of the enterprise production and development. This paper does research on a suited ordering model based on the traditional ordering experience and aims to do some exploration and reference for the rapid development of logistic in biologic industry.This paper aims at the ordering problem of biological X material with a period of validity, and uses the discrete event modeling and simulation method to establish an inventory simulation model which has validity check with an ultimate goal of inventory storage cost, ordering cost, shortage cost, invalidity loss cost and with a main body of the process of inventory operation. The effective frequency can be obtained by the model simulation, and we can get the best ordering strategy with inventory capacity 500 and order point 220 and evaluate the effectiveness of the simulation result under the specific management mode with combination of 20 actual ordering strategy. Therefore, the simulation result has a guiding instruction for the ordering of X material for company HD. In addition, the research provides a useful practical case to scientize the ordering management and help improves the level of production and management for company HD.