Research On Profit Of Community Fresh Stores Under Non-Linear Inventory Holding Cost

With the continuous improvement of China’s economic level,people’s demand for fresh food is becoming stronger and stronger.Nowadays,people’s demand for fresh food not only stays on the availability of products,but also pays more attention to the quality of them.Community fresh food stores can not only meet people’s fresh food shopping needs,but also ensure the timely supply of fresh food and product quality due to the modern logistics system.With the rapid development of the industry,problems in the development process are gradually exposed,and more and more community fresh stores are facing the risk of corporate failure due to poor management and excessive inventory costs.Therefore,how to ensure the inventory cost control of the community fresh shop and maximize the profit of the enterprise has become an urgent problem.Aimed at the max profit per unit time of the community fresh shop,this paper constructs the target profit function of community fresh store by connecting the ordering period with the sales profit,considering the relationship between the demand rate and the inventory level,regarding the inventory holding cost as a non-linear function of the inventory quantity.In order to study which operating strategy maximizes the target profit of the community fresh food store,the target profit of the community fresh food store is analyzed in turn without considering promotion and considering promotion.With no promotion strategy,in order to ensure the sales rate of products,the community fresh stores keep the necessary inventory in the store to stimulate customer consumption,and the sales rate of products throughout the entire order cycle is always kept at a high level to increase the inventory turnover rate.When considering the promotion strategy,a certain amount of inventory will be reduced in price,and the remaining inventory will be cleared in a timely manner through price advantage.The product will always maintain a high quality and reduce the risk of decay and deterioration,which not only guarantees the sales rate but also prevents business risks.In order to study the maximum profit of the community fresh store,the article uses genetic algorithm to solve the model;and we do sensitivity analysis for each parameter in order to study the influence of them on the community fresh store inventory holding cost and profit.Finally,the model is explained through a case of a brand apple in the S community fresh shop,and the application of the model in the community fresh shop through the actual case study,and according to the business characteristics of the enterprise,some measures for inventory cost control and profit guarantee are proposed.