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Research of Enterprise Storage Ecosystem Based on Storage Theory and Nonlinear Discrete Optimization

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Document pages: 11 pages

Abstract: Warehousing and transferring strategies are an important part of businessoperations. The issue of optimal warehousing and transferring strategy is studiedin 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 nonlineardiscrete programming model, aiming at maximizing the profit per cycle ofevery branch and further maximizing the company’s total profit per cycle.Among them, the random storage strategy model establishes a security zoneof inventory for every branch, that is, it can meet consumers’ demand withoutspending too much storage costs. The Markov chain model is used to get theprobability of losing sales opportunities in every branch. The nonlinear discreteprogramming model takes into account the horizontal transferringamong 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 completestorage ecosystem and provide constructive suggestions for the company’soperations.

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