New Breakthrough In Apparel Retail Inventory Management

In apparel industry, good inventory management is very important for clothing retailers.

A material item stored in a specific geographical location is called stock Keeping Unit (SKU), which is generally the smallest unit in the unit and box, and a large number of SKU can constitute the commonly referred stock.

Inventory management is a process of managing and managing all kinds of problems related to the inventory situation of enterprises.

The inventory management of garment industry is to manage the safety stock level by controlling the safety stock level, deciding the replenishment time and order size, so as to make the clothing retailer get larger profits and achieve the purpose of raising the turnover rate and overall competitiveness of the entire supply chain.

With the scientific management of inventory, the research of inventory management has made great progress. Now, many inventory models have been formed. The inventory model of economic order quantity is put forward by Harris in 1915. Since then, inventory research has entered the era of modern inventory theory. Partial storage theory has been applied to enterprise management and has achieved remarkable results.

Inventory simulation is generally used to test the validity of inventory theory. In addition, the inventory simulation function is added to the retail inventory management system. On the one hand, it can analyze and evaluate the existing inventory strategy, on the other hand, it can provide users with certain credibility and improve the inventory management ability of the users to a certain extent.

Up to now, the theory development of inventory management has been raised to a certain height. At present, the inventory management model is diversified and highly flexible. The classical inventory theory has the ABC classification proposed by Pareto of Italy.

In the history of inventory theory, there are many researches on inventory of basic and non perishable products.

Hadley introduced related inventory.

At that time, the batch production model and the periodic inventory model were also attracted much attention.

There are also researches on the inventory of perishable products, Papachristos and Skouri. The inventory of deteriorating items is studied, and the replenishment problem of deteriorating commodities is solved under conditions of allowing shortage and changing demand.

Although the inventory model plays an important role in inventory research, due to the limitations of the inventory model, it can not be integrated with the apparel retail inventory management.

Much has been done about it.

Inventory management research, Li Juan through BP neural network technology for clothing demand forecasting and inventory management, Yang and so on quantitative ordering model in detail, Ren Li inventory management inventory turnover rate was analyzed in detail.

Because of the characteristics of Garment Retailing, that is, variety and large demand changes, it is necessary to design the inventory model of clothing products according to the actual situation, so as to achieve better inventory management effect, which results in the strong targeting and low adaptability of the apparel inventory management model.

In terms of inventory management, that is, who manages inventory problems, there are three main ways of inventory management: VendorManaged Inventory (VMI), Custom Managed Inventory (CMI), and joint inventory management (Jointly ManagedInventory, JMI).

Supplier

To assume the responsibility of economic and management of enterprise inventory, many people support Vendor Managed Inventory (VMI). It is considered that inventory management is a new and representative storage management idea, and is the trend of future development. Customer management inventory (CMI) is that retailers manage inventory, retailers and suppliers share information, retailers decide inventory management, and retailers' management (CMI) proponents think that retailer Management (CMI) is better, because retailers are directly exposed to consumers in the supply chain system, so the consumers' needs are the fastest and most direct. Joint inventory management (JMI) manages inventory by suppliers and retailers. Proponents believe that the bullwhip phenomenon caused by multi echelon supply chain in supply chain system, that is, demand amplification caused by independent inventory, can be solved by proponents. Inventory (VMI), that is, centralized management of inventory and sales information by multiple retailers in the supply chain.