Inventory replenishment planning of a distribution system with storage capacity constraints and multi-channel order fulfilment

In this paper, an inventory replenishment planning problem in a two-echelon distribution system of Alibaba with central centre (CDC) and multiple front centers (FDCs) is studied. the system, CDC replenishes its inventories products from external suppliers, while each FDC CDC. These are jointly replenished at stock. This arises when prepares annual “double 11” promotion. Facing stochastic demands promotion period, objective to optimally determine quantities for stock before so that expected total profit maximized, subject storage capacity constraint During promotion, customer orders may be fulfilled through channels, is, order by local FDC, other FDCs, or optimization formulated as convex nonlinear programming model solved piecewise linear approximation approach. The effectiveness approach demonstrated numerical experiments on instances generated based data Alibaba. results show our can lead significantly higher compared deterministic model.