Controlling of Multi-echelon Inventory in Distribution Supply Chain System based on Stochastic Demand

Directly using conclusions of EOQ model, this paper builds a multi-echelon inventory model with demand submitting to Poisson distribution and lead time submitting to Normal distribution. By analyzing the inventory of both distribution center and retailers, the optimal solution could be obtained by Matlab. Comparing with existing multi-echelon inventory models, this model supposes that both demand and lead time are stochastic, and their distribution functions are more practical, so quantitative calculations are more rational.