Research On The Application Of CPFR Method In The Inventory Turnover Management Of LH Departments

With the continuous progress of society and the increasingly fierce market competition,the relationship between retailers and suppliers is weakening.Retail enterprises often have two extreme situations:high inventory or shortage.So what effective measures will enterprises take to reduce their inventory and speed up the turnover of inventory has become the top priority of the company's development.Under such circumstances,it is difficult for retailers to change the above inventory situation if they only rely on one-sided efforts.The traditional inventory management methods basically focus on the enterprise's inventory forecasting and management.This approach has proven that stocks are either overstocked or out of stock.So we turn our attention to the supply chain and use the advantages of the whole supply chain to solve the inventory problem.The collaborative supply chain inventory management can solve this problem.Compared with the traditional inventory management,it focuses more on strengthening the collaboration with each node enterprise in the supply chain.The market competition is becoming increasingly fierce.In response to the requirements of large and well-known suppliers such as Master Kang and Unified Enterprises,the application of CPFR in retail enterprises in China has become an inevitable trend.This paper takes this as the research background,carefully investigates and studies a large supermarket chain in Xiamen,through the study of its specific implementation of CPFR to analyze the application of CPFR method in LH department inventory turnover management and its problems.This paper first summarizes the concepts of inventory,supply chain,supply chain management,inventory turnover,collaborative supply chain inventory management and ABC classification.Then it describes the background and necessity of applying CPFR in LH Department stores,and then studies the current situation of applying CPFR in LH Department stores,including the general situation and specific application of CPFR in LH Department stores.On this basis,the effect of applying CPFR in LH department store is analyzed.Finally,according to the application process and the specific problems in the company's CPFR application,the improvement measures of the company's application of CPFR are given.The results show that the cooperative replenishment mode can effectively reduce the cost of inventory management,enhance the competitiveness and collaboration of supply chain as a whole,and improve the inventory turnover rate of enterprises.The research results in this paper can provide reference value and practical significance for retailers to implement collaborative replenishment and solve related inventory management to a certain extent.