Demand Forecasting And Inventory Management Optimization Of Different Clothing Product

With the rapid development of the economy,consumers have more stringent requirements for clothing products,resulting in rapidly changing market demand and fierce competition among clothing companies.When the inventory in the industry responds to changes in market demand,due to the low accuracy of demand forecast Problems such as inventory backlog,and high costs have also intensified.As a long-established casual clothing company,Enterprise E,due to its unclear product classification,inaccurate demand forecast,and poor product cost control,has led to a low sell-out rate of its products,obvious inventory backlog,and a shortage of corporate funds.The crisis caused by the backlog of inventory not only affects the capital flow of the enterprise but also increases the cost of invalid inventory and reduces profits year by year.Therefore,demand forecasting and inventory management optimization are urgent problems for E-enterprises.Through the analysis of a typical enterprise’s demand and inventory management,it can help enterprises to achieve multiple goals of maximize profits,minimize costs and replenish working capital.This paper is mainly based on the status quo of E-enterprise’s inventory and demand,referring to the existing literature,and fully considering the different types of products of the enterprise:fashion models and regular models.For different types of products,analyze their demand forecast,optimal order quantity,and optimal cost,to seek the optimal inventory management of the enterprise.This paper firstly uses the existing literature as the theoretical basis,with the help of the ABC classification method and the PLC theoretical method,to classify different products in the clothing industry,which can be divided into conventional models and fashion models,and use different models for different product types.Demand forecasting and inventory optimization,conventional models rely on an improved version of the economical order batch model,and fashion models rely on gray theory GM(1,1).Based on the EOQ model,it is set to predict the optimal order quantity for regular items under the condition of allowing out of stock,calculate the total inventory cost to minimize;and analyze the location of E company to ensure that the product sales positioning matches the local clothing consumption level,to avoid the risk of inventory backlog.This paper studies the demand forecasting and inventory management optimization of the domestic and foreign clothing industry,combined with the current situation of E-enterprises,puts forward the inventory management problems of typical enterprises in my country’s clothing industry,and optimizes them,to find the best way to solve the inventory problem.