Research on the optimization of retailer inventory strategy based on system dynamics simulation

Abstract

Aiming at a satisfying inventory strategy, simulation was put into use in a dynamic system. In this paper, we focused on a simply two-stage supply chain inventory management system. The model of inventory system was simplified rationally, and we assumed that it was primarily consisted of a manufacturer and a retailer. The study based on the theory of System Dynamics and vensim software was used to optimize variable parameters in the supply chain inventory system. The retailer inventory strategy was optimized under uncertain environment and the variable parameters of adjustment production time, demand production delay time and demand sale time were reset, and then a rational inventory management project was selected in this system. Finally, an example was come up with and it showed that the method was feasible and a better retailer inventory strategy was proposed.