Study on Two- echelon Centralized Inventory Management Based on Supply Chain

Zhiya Chen, Lijuan Mao, Xiaoping Fang
2011 Contemporary Logistics  
journal homepage: www.seiofbluemountain.com Based on different demand from the downstream of the supply chain, a two-echelon centralized inventory control model of raw materials and finished products is built by improving the traditional multi-echelon inventory model in order to minimize enterprise's total inventory costs. A comparison of the two models is given, and it is found that the twoechelon centralized inventory control model can reduce inventory cost as well as improve service. An
more » ... ical research of a particular product in four manufacturers is done, it shows that the two-echelon centralized inventory control model can reduce inventory costs by 11.7%.
doi:10.5503/j.cl.2011.03.012 fatcat:pzmev6ptnfc7pguy3znal6v73y