An Optimization Model for Inventory System and the Algorithm for the Optimal Inventory Costs Based on Supply-Demand Balance

In order to investigate the inventory optimization of circulation enterprises, demand analysis was carried out firstly considering supply-demand balance. Then, it was assumed that the demand process complied with mutually independent compound Poisson process. Based on this assumption, an optimization model for inventory control of circulation enterprises was established with the goal of minimizing the average total costs in unit time of inventory system. In addition, the optimal computing algorithm for inventory costs was presented. Meanwhile, taking the agricultural enterprises in Aksu, Xinjiang, China, for example, the researchers conducted numerical simulation and sensitivity analysis. Through constantly adjusting and modifying the parameters values in model, the optimal stock and the optimal inventory costs were obtained. Therein, the numerical results showed that the uncertainty of lead time greatly influenced the optimal inventory strategy. Besides, it was demonstrated that the research results provided a valuable reference for the agricultural enterprises in terms of optimal management for inventory system.