VMI Research On Implementation For Integration Of Industry And Commerce In Tobacco Industry

In order to deal with pressure from both domestic and abroad competition, China tobacco industry has already carried on some remarkable changes, such as separation of industrial and commercial, removal of county sales corporation after entering 21st century. The market-oriented tobacco supply chain framework has been formed. The successful separation of industrial and commercial corporations has enhanced the domestic cigarette brand. However, this separation also complicates logistics cooperation between corporations. Unified planning of industrial and commercial corporations' physical distribution with modern logistics theory become the new problems of tobacco industry. Integration of industry and commerce is believed one of the solutions to deal with this problem and to improve tobacco supply chain management level.As an advanced supply chain inventory strategy, VMI can promote the process of integration of industry and commerce. This paper carries out theory and application research on VMI, aiming at improving integration process. In terms of features of cigarette sales and industry monopoly, this thesis takes the opportunity cost into consideration. With lead time requirements of customers that meet the normal distribution, we can get a VMI cost model of the industrial and commercial two-echelon tobacco supply chain which is based on (R, Q) strategy. And the economic ordering quantity to minimize the total cost can be obtained. Numerical experiments with MATLAB verify its effect on reducing the inventory as well as cost of the tobacco industry on specific condition. This result means a lot for tobacco industry in enhancing market control and quick response capability. Moreover, there is a special type of problems being discussed when industrial and commercial corporations in the same city. This specific solution can do some help in selecting VMI pattern and in better deploying resources in tobacco supply chain.Based on theory research, this paper designs VMI implementation framework in the process of integration of tobacco industry and commerce. VMI organization structure is designed to fit new tobacco distribution patterns. Using RFID, 3G technologies and taking economic transportation radius into account in the transformation process of tobacco logistics, VMI business process is rebuilt so as to optimize logistics docking of the industrial and commercial. With J2EE platform and B/S three-tier structure, the framework and functions of VMI information system of Tobacco industry are put forward to share inventory and sales information, carry out real-time estimate, and implement continuous replenishment between different sectors of tobacco supply chain . At last, a simulation experiment based on the actual data of one tobacco provincial company is carried through and the results demonstrate the proposed VMI implementation frame is effective in reducing the cost and improving management.The paper applies VMI in tobacco industry and has done a lot work in both theory and application research. The research results could be used in changing independently business operation status and improving tobacco supply chain management.