Abstract:

In order to help apparel retailers get accurate market information and make quick response to customers’ demand, this paper suggests Kalman filter for forecasting and discuses related inventory control policies with different lead time and order cycle time. Meanwhile, simulation is carried out to compare the effect of different inventory control policies on the profit of an enterprise level under certain service level. The results indicate that under the replenishment mode with high-frequency and small quantity can bring more profits to an apparel retailer under certain service level.