A Study Of System Dynamics In Supply Chain Of Inventory Management For Fast-moving Consumer Goods Industry

Fast-moving consumer goods (FMCG) industry in the global economy occupies a very important position, because of people's necessities consumption of daily are indispensable. With China's accession to the WTO, foreign enterprises enter into china, if domestic FMCG enterprises want to survive, they must adjust the trading strategy to maintain its competitive .Supply chain inventory management model is a management technology which is based on supply chain inventory. It can not only reduce the inventory of vendors, but also increase the suppliers sales. Because it is based on the supply chain, so the biggest advantage is timely and accurate to forecast the sales peaks and fluctuations which come from the various promotions or unusual changes , so that vendors and suppliers will be fully prepared to win the initiative .This paper analyses the needness and feasibility of implementation of the supply chain management in the fast moving consumer goods (FMCG) industry ,And based on the problems, combined the information technology to establish a network model which can link the suppliers and dealers, so we can clearly understand the fast moving consumer goods supply chain business entities flow, capital flow and information flow.This paper also used the system dynamics as the research methods, on the basis of the fast moving consumer goods industry supply chain inventory management causal relationship ,using the system dynamics software Powsim set up the Customer Managed Inventory (CMI ) dynamic model and Vendor Managed Inventory (VMI) dynamic model of the supply chain. And combined the scenarios of the market: Sin-Wave and Pulse, simulate the dynamic model of the supply chain management. So we can understand change of the Cost and volume of orders of the CMI and VMI,And compare its performance,so that the managers can make reasonable decisions.