A different optimization method of two-echelon inventory control system based on linear regression theory

After reviewing traditional inventory control theories in the introduction of the full paper, we present the new optimization method based on linear regression theory for the two-echelon inventory control system, which includes one sub-warehouse and one warehouse. In the two-echelon inventory control system, the demand of customers is subjected to the Poisson distribution. In the full paper, three achievements are introduced: (1) we establish the optimization mathematical model of the two-echelon inventory control system based on linear regression theory; (2) we derive 54 typical linear regression equations for the two-echelon inventory control system based on the least squares theory; (3) the modification method of the linear regression equations is improved for different service levels. The simulation results, given in Fig. 4 and Tables 1 through 6, and their analysis show preliminarily that: (1) the 54 typical linear regression equations have obvious linear relationship; (2) the optimization mathematical model based on the linear regression theory is effective; (3) the optimization method presented by us has the same performance as other simulation optimization methods.