Research On VendorManaged Inventory Mode Based On Supply Chain

Firstly, some differences between traditional inventory management andinventory management based on SCM are discussed; the Vendor-Managed-Inventory(VMI) is introduced. After analysis about the inducements of Bullwhip Effect and itsinfluence to the supply chain in traditional inventory management, a quantitativemodel is introduced to show VMI can reduce Bullwhip Effect. Then the benefits thesupplier and the buyer get from implementing VMI in the short time and the long runare analyzed through the economic mode. After that, TPL could be integrated intoVMI system, and prove that TPL will reduce the cost of suppliers under VMI.According to the author's practice experience in a manufacturing factory, whichuse JIT mode to manage the inventory and the supplier, the shortcomings of JIT modecompared with VMI mode, and give some suggestions on how VMI can improve JITin this company.Finally, the implementation of VMI in a supply chain including the preparationof VMI, the procedure of implementing VMI are explored, and a method to evaluatethe effect of implementing VMI and some suggestions about the key point of VMIimplementing are presented.