Study On S Compnay's Optimization Of Inven- Tory Ordering Strategy And Application Of Simulation Evaluation

With the continuous development of the domestic cold chain industry in China,temperature monitoring during transport has become an important part of cold chain logistics quality control system.The S company as one of the leading companies specializing in the design and sales of temperature recorder for cold chain temperature monitoring,is facing a period of rapid development of market demand.However,currently S's inventory management is not yet fully adapted to the market demand growth pace,who is still maintain their accustomed policy of warehouse management and stock order principles,caused a series of inventory management issues such as unplanned and random ordering frequency which led to high inventory levels;back orders caused by unpredictable customer demands and,higher ordering cost caused by orders in non-economical batch quantities.It also caused high error rate during stock cycling counting.All those inventory problems have shed a negative impact on sales,marketing and customer satisfaction.Therefore,we are looking for a scientific management planning tools to optimize current inventory system,improve the management efficiency,shorten delivery lead-time and reduce associated costs.On this basis,through the use of simulation software on computer,we supposed to build a simulation model to simulate ordering process which can adapt to future market demand,and to meet the purpose of optimizing inventory management of S company.For inventory management problems that mentioned above,the thesis has explored and studied some major theories of inventory control in academia.By collecting customer's order history of a major product for data analysis from year 2010 to 2014,the thesis found actual customer demand trends,sales performance fluctuations with the seasons,and acquired demand growth rate equation through using the growth curve fitting technics.By using classical EOQ model and manual simulation to the historical customer order quantity,optimized ordering quantities against historical demand and the actual order quantities were compared and analyzed to find out the difference between orders and demands,and the reasons for the differences are found.As the actual inventory system is regarded as a discrete event system,by comparing different characteristics of multiple simulation software,the simulation software Arena has been finally selected for computer modeling and simulation in this thesis.The whole process of modeling comprise analysis of inventory system operating principles,setting of related assumptions,model building against system operating progresses,adjustment and running trials to the model and,analyses of input and output data.Through repeated running of the model,the ordering policy that reordering point of inventory should be deter-mined by optimal ordering cost is found.Meanwhile,the simulation results are validated by reliability and confidence interval analyzing methodologies,which demonstrate the feasibility and effectiveness of S's inventory management improvement.