Study on decisions of centralized and decentralized inventory control of fresh food dual-channel

Abstract

For inventory control strategy, the more common side strategy is centralized inventory control strategy and decentralized inventory control strategy. In this paper, multiple retailers on the supply chain are chose as research objects to study the inventory control strategy under random demand of these retailers in a multi-period inventory system. Considering the shortage costs and inventory holding costs, multi-period stochastic inventory models are built to compare the difference between traditional decentralized inventory control strategy and centralized inventory control strategy based on risk sharing. The findings show the advantages of centralized inventory control. Besides, this paper also analysis the influence of demand relevance on the performance of centralized inventory control strategy.