Vendor Managed Inventory System Based On The Idef3 Modeling And Simulation

Global manufacturing and economic integration make competition more drastic between companies. The competition between companies gradually changing to the competition between supply chains. As is known to us all, Inventory management has a important role in company management. Inventory management has a more important role in supply chain management which acts as a patulous company, because inventory management not only affects the cost of member company in the supply chain but also restricts the integrated cost, whole performance and competitive advantage.In a general way, inventories are managed by the inventory owner. But, every member in the supply chain independently operate according to its own need, because they cannot know the client need and matching state. This will lead to reduplicate inventories, so that the whole supply chain cannot get the lowest cost and the inventories in the whole supply chain will become contorted along with the supply chain length.The ideal mode of inventories management in supply chains is an inventories management mode which emphasizes information sharing, benefit sharing and risk sharing mode. The coordination relationship can makes inventories management upgrade to supply chain management. The inventories management is not the action of the single company, but is the action between the coordination members. They bring forward coopration frame of inventories management. VMI system can breakthrough conventional inventory management mode. It will use systemic and compositive means to manage inventories, so that the supply chain can operate synchronously. But, the present researches on VMI system are not sufficient, so the farther studies on VMI system are very essential.Discuss the modeling method of IDEF3 and emphasize on the key technologies of IDEF3 modeling. Compare traditional SCM model with advanced VMI model, point out inventory control problems in the SCM and explain the advandages of VMI model. Emphasize on the analysis to VMI system structure and cooperation mechanism between the supply chain nodes, discuss the feasibility of IDEF3 modeling and build up the VMI management model. Entities in the model can coordinate each other to share the information, realize the information exchanges and shares so as to realize the system-optimized goal at last. Finally simulate this model and analyze the output of the program on the simulating platform.According to the results of the simulating, we can know that the VMI model reduces the total cost of the supply chain and the cost of inventory. The product shortage is greatly decreased and the simulation enhances the performance of supply chain so that the service quality and satisfactions of users are increased.