The Research On The Inventory And Replenishment Under VMI Circumstance

Along with the rapid development of manufacturing enterprise in China, the stock management of various components becomes very important. In many manufacturing enterprises the inventory cost, especially the inventory cost of raw materials occupies lots of current capital. So it’s very important to decrease the inventory of raw materials and reduce the inventory cost, the manufacturing enterprises can make use of material classification method synthetically, adopt differentiated management according to different types of materials, and make full use of VMI, the manufacturing enterprises can steadily ally with the vendors.And advances in competition environment and management models have increased both the scope and intensity of competition between organizations.During the last few years, the focus has shifted from the enterprise level management of supply chains to enterprise level management of supply chains. In order to be the winner, each company should make full use of its own resources, for example, constructing coordination mechanism between enterprises within a supply chain. Vendor managed inventories (VMI) which focus on enterprise process information management was established on the theoretical base of supply chain.The main contents of this paper are as follows:firstly, this paper makes innovation based on the ABC classification, forms a multifactor classified matrix model, then corresponding inventory strategy is selected according to the different features of the materials, this leads to a low cost, and resources can be effectively used. The key materials is managed with VMI, this paper researchs the optimal ordering quantity of all materials. This paper establishes an overall supply chain model which is to get the target of the maximum profit under BOM constraint, and also counts the most optimized ordering quantity of the suppliers of all components. Through the model, the manufacturing enterprise and its suppliers can make decision together, they decide replishment according to the proportion of the components of the BOM, manufacturing enterprise also can flexibly manage the inventory of the components. The result of this paper proves that the supply chain can reach the target of integrated inventory management and the efficiency of the inventory management can be improved.Secondly,the VMI is used to carry out the tactic alliance, so this paper analyses the contract between the venders and the manufacturing enterprise. The paper studied from respect of supplier’s profit as well as manufacturing enterprise’s component cost. Both buyers and suppliers in supply chain are willing to sacrifice part self-profit to realize co-operation and double win. The paper constructs a revenues-sharing model between the supplier and the manufacturing enterprise. On specifical condition, the VMI can bring benefit to both the supplier and the manufacturing enterprise.Thirdly,this paper analyzes replenishment model by considing previous research, and constructing a periodic replenishment mathematics models,considering a two-echelon supply chain consists of a single supplier and multiple retailers. Upon these, I study the profits under disperse policy decision. Then the vender bring the supply chain cooperation without revenue sharing contract in order to increase the profits. Lastly, coordination mechanism was introduced, the revenue sharing contract is introduced to the models in order to improve the supply chain’s performance and realize coordination out. On this basis, this research compares the differences between the models with backorder and without backorder. And then.the correlations of related parameters and the impacts of them on the profit are analyzed.The research results show that through the joint efforts of the supply chain members, each supplier can be according to the proportion relationship of BOM components manufacturing enterprises replenishment and reduce inventory costs, improve inventory decision is correct.The distributed decision-making supply chain is compared to the cooperated decision-making one and the changes of different variables and the impacts of them on all parties’profits are analyzed. The results show that the mechanism can coordinate the profit of VMI supply chain members effectively and achieve the purpose of maximizing system benefit. The results show that no matter what kind of structure, distributed decision will lead to low efficience.In cooperated supply chain, all parties’profits are higher than that in distributed decision-making ones.But coordinated supply chains can get the highest profits,and these profits can be appropriatly distributed between the members of supply chain under constract.