Investigating Inventory Model Based on Product Segments and Procurement Behaviour

The research studies on types of products and purchase investigation into inventory management of supply chain. We choose cases from domestic manufacturing industry and retail industry to investigate their inventory management models. The types of products separate functional products and innovative products; purchasing orientations divides into buying and procurement orientation. Two constructs influence each other and conduct an inventory matrix. There are three inventory models: Economic lot size model, CPFR model and VMI model in the matrix. The inventory of high buying orientation and functional products are managed with Economic lot size model, while those with high procurement orientation and innovative products with VMI model, and others with CPFR model.