Optimizing the inventory allocation problem between automobile manufacturer and 4S stores

Most domestic automobile manufacturers always keep a great amount of inventories generally because of the expansion of production capacity. In order to cope with the problem, the automobile manufacturers attempt to transfer the inventory risk to 4S stores by the means of distributing the sales target to the 4S stores. This leads to a sharp increase in its 4S stores' inventories, and the game between the two sides on the inventory coefficient is getting more and more intense. Based on the obtained data through investigating self-owned brand automobile stores' inventory, this paper puts forward a feasible database-based optimization scheme first and then establishes a model respectively, to optimize the automobile manufacturers' decision for improving the inventory status of 4S stores and mitigating the channel conflict between the two sides.