An Optimal Inventory Model Based on Postponement Strategy: A Bi-Level Programming Approach

In order to reduce the risk and cost, manufacturing enterprises turn to postponement strategy to meet differential demand of customers: this is helpful to enhance the customer service level, and this is also helpful to achieve the goal of maximizing the inventory profit. Under this assumption, inventory batch allotment shows new features, therefore, the paper proposes an optimal inventory model based on postponement strategy, which includes the framework model and the decision-making model. The framework model is firstly discussed, and then its efficiency is verified. Secondly, the decision-making model of inventory batch allotment is established with a bi-level programming approach. The decision-making model is calculated and verified using the investigation data, which is proved to be efficient to give reasonable allotment of supply chain inventory batch. It also provides an effective decision-making tool of supply chain coordination.