The simulation research on inventory control of distribution system based on customer segmentation

The distribution system has been the most important part in the management of supply chain. The way to reduce the inventory cost considering keeping the customer level is the hotspot in the industry and academe. The paper tries to apply the theory of customer segmentation to the inventory control strategy in distribution system. Firstly, we promote an amendatory formula of customer service level based on customer segmentation, and then erect an inventory control simulation model based on customer segmentation in a distribution system. In this way, we can find an effective inventory optimized control strategy to reduce the cost, and at the same time to enhance the satisfaction of important customers.