Research On Vendor-Managed Inventory Replenishment Based On Collaborative Forecasting

In today's competitive environment of globalization, the spirit of competition is no longer between the companies but the supply chains. Hence, supply chain management becomes rapid development and extensive application. Its objectives is to minimize the cost of providing the greatest customer value, through the trading partners to work closely together which requires all sectors of the supply chain the activities of enterprises should be carried out simultaneously. Against such backdrop, a new supply chain management strategy, Vendor-Managed Inventory, or VMI, comes to reality.With the theoretical in-depth research of VMI and the implementation of large-scale in enterprises, some of the inherent weaknesses of the VMI also gradually exposed. In the traditional VMI, the replenishment decision-making is the supplier of one-way decision-making process. Supplier predicts future market needs and develops production and replenishment plans according to retailers inventory levels and historical sales information. As lack of coordination and overall integration with retailers, the result often leads to inaccurate forecasts, which making the supplier's production and replenishment decision-making errors. In the academic study of integrated supply chain solutions, the more obvious one is CPFR mode issued by the VICS in 1998. Through the present study we found the deficiencies need to pay attention to this issue; this paper proposes the important issues needed to pay more attention. It is that absorbing the idea of collaborative forecast in CPFR, in the concept of building on synergies forecast VMI replenishment policy and constructing VMI forecast and replenishment mechanism. Then we use system dynamics modeling and simulation to compute the model, compare the VMI replenishment policy's impact on the supply-chain before and after improvement, and develop the conclusions of this paper.