VMI Management In L Company

Along with the economic globalization, the competition between enterprises has evolved into the competition between supply chains. Inventory management is an important part of supply chain management. Advanced inventory management model in the IT, electronics, retaisl and automobiles industry is more mature than in home furnishing industry. Home furnishing industry is faced with the challenges that market demand for personalized, diversification and product life cycle is becoming shorter and shorter. If the inventory is not reasonable, stock fund will bring tremendous risk to company. So how to optimize the inventory management is the focus for home furnishing industry.In this thesis, through to read domestic and foreign literatures, and analysis of the existing problems in the inventory management of L company, combined with the characteristics of home furnishing industry, combined with the characteristics of home furnishing industry, proposes a inventory management method based on the Vendor Managed Inventory (VMI). This thesis get some achievements. Using2kinds of classification methods to choose the suitable material for VMI management in L company. In the use of the ABC classification, quantity, inventory storage and supplier cooperation are used as the ABC classification standard, combine with the characteristics of VMI management material, choose190kinds of material as the first VMI management material in L company. According to the characters of supply chain of L company and the selected VMI management material, put forward the best practice model and the necessary conditions for VMI. On this basis, put forward revenue sharing and coordination mechanism model to ensure the long-term implementation of VMI. Use the L company’s data to research these model, analysis the influence for coefficient of revenue sharing by retail price, cost and the demand. This thesis prove that, Nash under the coordination of the revenue sharing and coordination mechanism can perfectly coordinate each supply chain members’s profit in the decentralized VMI.The method proposed in this thesis, can promote the level of inventory managemen in L company, and guidance and reference inventory management to other home furnishing industry.