Inventory Management Strategy of Retail Trade on Revenue Management

With the increasing competition of retail trade in China, only meeting the customer’s demand exactly and quickly and developing the service level and revenue maximization, do the enterprise can beat the competition. The inventory management is the key to success. It is in the vital place of the operation management, because it relates to the cost and has an influence on the economic benefits and service level. The traditional retail enterprise use the inventory strategy based on the natural property of commodity. But it ignores the difference of different goods to the revenue and contribution. This paper mostly according to the thought of the revenue management uses category management, making an effective commodity classification strategy. It aims at making the variability inventory management of the different contribution of goods. Then with making models, we figure out these problems about order point, order amount and maximized inventory level and so on. So the enterprise can reduce the inventory level as far as possible and develop the efficiency of logistics system by controlling the inventory level on the assumption of meeting the demand of target customers.