The Strategy of Inventory Financing with Incomplete Information Based on Entropy

Lu Xu, Chongqing Academy of Science and Technology for Development
2019 Journal of Mathematics and Informatics  
This paper mainly studies the retailer's reorder quantity and the profits of retailer, supplier and entire supply chain with inventory financing under incomplete information based on entropy. First we establish a inventory financing model to derive the reorder quantity of retailer under centralized supply chain and decentralized supply chain respectively. Then introduce the maximum entropy method to predict the market demand distribution. Fianlly, the results of our experiment indicate that
more » ... rmation value can be higher when the market demand fluctuates severely and the best reorder quantity decision for retailer should be considered from entire supply chain except the fluncation of demand is big under incomplete information, while the retailer's decentralized decision under incomplete infromation will lead the entire supply chian to the worst profit.
doi:10.22457/jmi.146av17a13 fatcat:bj2uj3nikjfx5pjni6u3pgwptm