Research On Inventory Optimization Of Cotton Spinning Enterprises Under The Fluctuation Of Raw Material Price

In recent years,China's cotton price was influenced by the fluctuations of supply and demand,land,laber,and policies etc.The price' fluctuation largely affected cotton spinning enterprises' profits and inventory management.The procurement largely affected the operating costs.In the case of cotton industry climate index continuing to decline,some cotton spinning enterprises purchased contton at the time they needed to purchase scarce high-quality cotton to ensure production for reducing inventories costs and fluctuations of raw materials price.With the further rise of purchase price index and decline of the inventory index of raw materials,cotton spinning enterprises increasingly serious backloged inventory,cotton yarn prices falled influenced by cotton prices and inventory With intensifying competition,cotton spinning enterprises' profits are getting smaller.The competitions between cotton textile enterprises were gradually increased.In the complex and volatile economic environment,cotton spining enterprises should achieve reasonable inventory control.The study of raw material price fluctuation had a positive effect to improve the management level and enhance the competitiveness of cotton spinning enterprises.Based on the study of existing cotton price forecasting,we used Markov chain and fuzzy weighted Markov chain to predict cotton prices.On the basis of forecasting price,we introduced cotton spinning enterprises' inventory optimization models of allowed stockout,not allowed stockout under certain demand,allowed stockout under uncertain demand.We conducted cases study and performed sensitivity analysis of under certain demand.The results show that the models can reduce the total inventory costs.The influence from large to small of various factors on economic order quantity were the unit changes ordering costs,cotton forecast price,capital interest rate,unit changes in storage costs,stockout rate.The models under different conditions helped perfect the inventory management theory and had certain guidance to the inventory optimization decision of cotton textile enterprises.