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Research On Inventory Costs Of VMI System

Posted on:2012-06-29Degree:MasterType:Thesis
Country:ChinaCandidate:X M YangFull Text:PDF
GTID:2189330335954908Subject:Business management
Abstract/Summary:PDF Full Text Request
Enterprises are facing the pressure to improve product quality and reduce cost pressure, companies want to survive in a highly competitive market environment, they must work with its upstream or downstream partner to establish a good partnership and ensure credibility. Vendor Managed Inventory (VMI) model is a development of single-node inventory management model, an important operation mode of integrated supply chain management. Implementation of VMI can make the bullwhip effect weakened; reducing the total supply chain costs and improve the ability of supply chain to respond to market changes. Correct decisions of the parameters of VMI system is the key to its successful operation.Compared to ordering operators, when the cost of a production or an order for supplier in VMI system is high, suppliers for each batch production or stocking orders several times to meet the needs of Retailers strategy will be better than the "lot for lot" Strategy. Based on this reality, two models of non-degenerate product and deteriorating items are given in the paper and Partial backlogging by suppliers of the VMI model. As the complexity of the model, we use genetic algorithms to solve the objective function. Finally, examples and analysis of key parameters are used to illustrate the changes.This paper studies two VMI system cost model for supply chain enterprises can provide theoretical support to inventory management, can also help enterprise managers on VMI management to reduce the stock costs, provided theoretical basis for setting inventory strategy. The example analysis of model that each production batch, suppliers adopt order business times order demand meets the strategy can get the satisfactory results; VMI system Product metamorphic rate and throw the single factor changes will influence the decision operation decision-making and VMI system total cost per unit of time, so in inventory decision-making, need to consider product metamorphic rate and throw factors such as single coefficient.
Keywords/Search Tags:partial backlogging, production lot, genetic algorithm, VMI
PDF Full Text Request
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