Research On Inventory Management Model In Supply Chain Based On Pay-on-Production

Today, the competition between companies has become the campaign between supply chains. Faced with increasingly fierce competition in the market, if companies want to gain a firm foothold in the market for development, they need to optimize the supply chain system. The quality of inventory management not only affects the comprehensive cost of the enterprise in supply chain, but also restricts the whole function of supply chain.Looking at domestic and foreign experts' research on inventory management in supply chain, whether using advanced IT technology or improving existing inventory management and putting forward a new inventory management idea, the aim is to enable enterprises to reduce inventory costs and achieve maximum benefits. However, most studies just stand on one side to improve inventory management in supply chain. This thesis based on auto industry supply chain practices and begins from the supply chain optimization, trying to stand on the two sides both of manufacturers and suppliers, bringing the two sides to strengthen cooperation and optimize inventory, to gain the most profit together.This thesis researches inventory issue from a new and effective payment model. At first introduces the background and significance of the thesis, and reviews the researching actuality at home or abroad. The 2nd chapter explained some basic theory of supply chain management, inventory management and JIT (Just in Time). In order to provide theoretical basement for the POP (Pay-on-Production) model and inventory management which based on this model of the third part. The 3rd chapter is the main body of this thesis, comparing several common inventory strategy and payment models at first, then finding out the internal contact with VMI (Vendor Managed Inventory) and JIT, considered the characteristics with the use of materials, under way in the VMI and JIT, finally we build the POP model. Through analyzed the model, we prove the model's feasibility, and introduce the characteristics and advantages of inventory management which based on POP. It always faces many obstacles with using a new management way, by analyzing the resistance factor, this thesis think that we should do research into information sharing in supply chain and the choice of supply chain partners to solving the problems, and do a simple explanation. The 4th chapter by analyzing an actual case to verify POP's feasibility, and using specific dada to prove that it can enhance profits to both sides by using this inventory management way which based on POP. The 5th chapter is the epilogue part. Through summing up the whole thesis, we explain the insufficiency existing, and make a prospect of the future development.