Study On Vender Managed Inventory In A Two-member Supply Chain

With the increasingly competitive market, more and more enterprises and the introduction of the concept of supply chain management thinking. Inventory management in supply chain management and rapid response to customer demand environment, an increasingly important position. Traditionally, the various links in the supply chain management of their respective stock, seeking to maximize their own benefit. It is more often the direct consequence of the supply chain to demand more unstable. lead to "bullwhip effect" (Bullwhip Effect) production eventually increase the overall cost of inventory in the supply chain, affecting the overall optimization of the supply chain operation, weaken its overall competitive edge.To change this situation, A new supply chain inventory management thinking --- (Vender Managed Inventory VMI), emerged. In this way, the upstream supply chain downstream enterprises no longer passively according to the orders and additional orders for shipment. but according to their demand for the goods to lower overall grasp of the goods to meet the needs of downstream, It also made its own inventory management and ordering more rational, thus bringing the supply chain to reduce the cost of supply and demand.In this paper, in a vendor-managed inventory model on the basis of the status quo at home and abroad. considered the focus of the supply chain to achieve the levels of vendor-managed inventory in achieving the conditions taking into suppliers inventory management, how to coordinate the supply chain. The article mainly orders, the retailer's effort, the cost of inventories, suppliers and retailers such as risk and return, the establishment of two models.On the levels of the supply chain under the terms of vendor-managed inventory. major retailers to establish a level of effort and orders for the newsboy model variables. By comparison suppliers and retailers in the RMI (retail and Managed Inventory) VMI the proceeds we found that changes in the supply chain from RMI to VMI, suppliers and retailers do not necessarily make the gains. Based on the model, we give both of the conditions for increased earnings.On the vendor-managed-inventory levels of the supply chain under the coordination mechanism. First, consider the supply chain to achieve a general model of the contract. Based on the model analysis, the establishment of a coordination mechanism for vendor-managed inventory model. Our commitment is to allow retailers to save part of the cost, while the retail part of the supply chain to share marketing costs. Order processing,αsaid the retail price of each commodity for compensation to the supplier,βsaid vendors of all proportion to the cost of marketing And throughαandβto design, The new VMI inventory and supply chain optimal centralized effort to achieve the level of the supply chain.