Research On The Application Of Vendor Managed Inventory In TAGAL

For a long time, the stock in circulation has been individual, and every company in this circulation has its own managerial strategy. Thus a requirement distorts will happen unavoidable, which is so-called bullwhip effect. So the stock fluctuation in the supply chain happens frequently due to the magnification of the requirements. And it is very hard to be solved by the traditional inventory management method. Recently a new supply chain inventory management method-VMI has arisen; it broke the traditional management module, and meets the requirements of the market.TAGAL is a joint venture which manufactures hot-dip galivazing steel, and it belongs to steel field. As we know, steel making has been acting as a sells' market for a long time, especially for the steel makers "Bao steel and An steel", but with the development of other steel makers, the situation changed, so the old mode "centre around the production" can not catch up with the market and the problems of the inventory are getting worse so that the traditional inventory management method can not solve.The article is made up of six parts. First chapter introduces the background of the research on Inventory Management ; Second chapter deals with the basic theory,Inventory Management controlling method and replenishment process; Third chapter analyzes the Inventory Management in TAGAL and put forward VMI; Fourth chapter deals with the research on VMI in TAGAL and in Fifth chapter, VMI is put into practice and an evaluation system is established. Sixth chapter sums up the achievements and the problems still exist. The author hopes that this article could enrich the study of VMI and also could provide some experience for the companies who are working on.