TITLE:
Research of Enterprise Storage Ecosystem Based on Storage Theory and Nonlinear Discrete Optimization
AUTHORS:
Zixin Lu, Jiaqi Zhu, Yufeng Gui
KEYWORDS:
Marketing Strategy, (s, S) Random Storage Strategy, Markov Chain, Discrete Nonlinear Programming Model
JOURNAL NAME:
Applied Mathematics,
Vol.9 No.6,
June
29,
2018
ABSTRACT:
Warehousing and transferring strategies are an important part of business
operations. The issue of optimal warehousing and transferring strategy is studied
in this paper. Wal-Mart in Wuhan serves as an example to establish a (s, S) random storage strategy model, a Markov chain model, and a nonlinear
discrete programming model, aiming at maximizing the profit per cycle of
every branch and further maximizing the company’s total profit per cycle.
Among them, the random storage strategy model establishes a security zone
of inventory for every branch, that is, it can meet consumers’ demand without
spending too much storage costs. The Markov chain model is used to get the
probability of losing sales opportunities in every branch. The nonlinear discrete
programming model takes into account the horizontal transferring
among branches, which further maximizes the company’s overall profit expectations.
The three models above can be used to formulate inventory strategies,
assess risks, and provide advice for every branch in order to form a complete
storage ecosystem and provide constructive suggestions for the company’s
operations.