Research On Inventory Control Strategy Based On Supply Chain Management

Along with the economic globalization, competition among enterprises has transformed into the supply chains'. Whether an enterprise is competitive, is not only judged by its own strength, but also its ability to integrate resources. It is necessary to well operate to get in touch with the market quickly, and reduce the risk and cost presses. Quick Response and Efficient Customer Response capacity have become decisive factors for enterprises.Enterprises who want to satisfy customers'requirements and avoid bullwhip effect of supply chain, should dedicate to improve the cooperation and flexibility of supply chain continuously. Vendor Managed Inventory is definitely an effective solution. The essence of VMI is sharing information between buyer and supplier, and the latter is responsible for controlling inventory. This can avoid excessive or insufficient to achieve the aim of improving the quality of customer service.Based on the retrospection of supply chain management theory and the research of VMI, this paper expound the differences between inventory management based on supply chain and the traditional one, then compared the characters of several supply chain inventory management models. Furthermore, some cost and price relations in the status of Vendor Managed Inventory were studied, with the retailer as kernel enterprise in supply chain. The impacts of cost and profit from VMI on vendors, buyers and the channel were analyzed in short period and long period. Perfect the two echelon VMI model on the basis of previous work. Conduct a series contrast of costs considering the reduction of order set up cost at the buyer's location.Present the VMI HUB operation in practice which combined with my internship experience at Suzhou industrial park and Shanghai waigaoqiao FTZ. That made the research not only has theoretical significance, but also has practical significance for enterprises.