Optimization And System Development Of Petroleum's Inventory Based On VMI

In recent years, the idea of supply chain management(SCM) have been paid more and more attention. With the globalization of market and economy, supply chain management now plays an important role in assisting companies to gain competitive advantage. While the inventory management is always an essential and important component during the process of enterprise operation, meanwhile it's also a key circle to provide the value added in whole value chains. The methods of inventory control are changing with the development of technology. Under the influence of the concept of supply chain management, traditional technology control theories and modes are no longer adapted to the new environment. Vendor Managed Inventory(VMI), as a newly inventory management strategy, highly reflects the integrated of SCM concept. Hence it's really an important topic to fulfill a VMI mode effectively provided the project designed carefully and scientifically.This paper starts with the introduction of SCM, and indicates VMI is an effective supply chain inventory management mode. It also does thorough analysis about the basic idea, the relative technology, enforcement and business process optimization of the VMI. With this foundation, combining with the task of inventory management optimization of a regional sales company of petroleum products, the paper does some work in three aspects as follows:(1) Study of business process optimization based on VMI. It analyzes the current situation of inventory management and business process in regional company, does thorough research on optimization of these two aspects with the idea of VMI, and it also designs a practical and feasible inventory management optimizing project, this project can improve service quality effectively and decrease the inventory cost.(2) Study on VMI model. Based on study of inventory model at home and abroad, this paper takes economic effect of VMI as evaluation standard and gives a VMI model with Stochastic demand. This model takes safety inventory, service level and lead-time so that it's more pertinent to the actuality. In the logistics distribution system of the company, using this model can make the accurate order decision byusing "Programming Solution" function and reduce the system cost of the supply chain effectively.(3) Design a decision support system of petroleum products based on VMI . Based the study above, this system adopts ASP.NET as development technology, uses C# as development language and Microsoft SQL Server2000 as database. In view of actual problem of petroleum products inventory decision, it designs a decision support system of petroleum products based on VMI, which is a system of B/S three-layer structure based on Internet/Intranet environment.The research conclusion of this paper can instruct the practical application of VMI and it also provides theory foundation for enterprise to enforce VMI model under the environment of supply chain.