Research on Inventory Strategy under Procurement Constraints in Supply Chain

Because of inventory is one of the major factors that affect the performance of supply chain, the effective reduction of inventory can reduce effectively the cost performance of the total supply chain. Therefore, inventory management is an important means to optimise the operation of supply chain and to enhance the competitive advantage. Considering the (s, S) policy in inventory management, this paper establishes a model of inventory level. Then, the change of inventory level with and without procurement constraints is analysed respectively, and their expectation and variance is provided.