Inventory Management Algorithm and System Implementation Based on Cost Control

With the economic globalization, the competition among traditional single enterprises has evolved into the competition among supply chains. Inventory control, as one of the main activities of inventory management, directly affects the realization of value added of supply chain, so it is very necessary to study inventory control in supply chain environment. According to the historical demand data, parts, supplier systems and order receiving and dispatching records provided by the enterprise, an inventory optimization algorithm suitable for four ordering modes is developed, which is used to optimize the ordering point and quantity with service level constraints under the random replenishment lead time to minimize the inventory cost. In the environment of inventory management, inventory control has a significant impact on customer service level, system cost and performance of supply chain. With the increasingly fierce competition among Chinese manufacturing enterprises, more and more enterprises are turning their attention to cost control. Although it is necessary to hold a certain amount of inventory, excessive inventory is not only useless but also takes up funds. Nowadays, many enterprises have achieved better benefits and improved their competitiveness in the market through effective management of the supply chain, but there are still the following problems in the management process: high management costs and low efficiency. In the face of uncertain needs of customers, the response speed of the supply chain is slow, which will be directly related to the survival and development of enterprises. Therefore, traditional inventory control methods have some limitations in controlling supply chain inventory. This paper analyzes the basic optimization algorithm of inventory management optimization algorithm - ant colony algorithm, and deeply studies the elements of intergenerational genetic algorithm. Based on the single-level inventory model and the two-level inventory cost model of supply chain, an inventory management system integrating supply, production and sales is established.