Research On Inventory And Transportation Policy Of Vendor Managed Inventory Supply Chain Involed With Third Party Logistics

With the development of global economics and supply chain theories, the Vendor Managed Inventory (VMI) theory is widely utilized and researched since it can reduce the bullwhip effect as well as supply chain’s cost. However, to vendors, VMI may not bring benefits due to their limit of ability of logistics. After involving the Third Party Logisitics (TPL) in VMI supply chain, VMI&TPL supply chain effectively covers the shortage of VMI and reduces the cost of supply chain. Therefore, VMI&TPL supply chain is valued by more and more researchers and enterprises. Yet, the research of VMI&TPL theory is still at primary stage, and it is imperfect. Thus, this paper studies the inventory and transportation strategy of VMI&TPL and the way to utilize VMI&TPL in enterprises in the basis of the fundamental VMI&TPL research.First, this paper reviews the previous research on VMI, TPL and inventory, and presents the reasons and feasibility of the involvement of TPL in VMI supply chain. Then, this paper introduces two kinds of VMI&TPL supply chain, and builds a mode to compare the overall logistic cost before and after the involvement of TPL. The result shows that TPL actually reduces the cost.Then, this paper studies "many vendors, one manufacturer, and one TPL" and "one vendor, many retailers, and one TPL" VMI&TPL supply chain, and builds different modes to find the optimal inventory and transportation strategy.Last, this paper take S company as an example to study the feasibility of the implement of VMI&TPL strategy, and uses the former statics of sales and production to compare the present EOQ strategy with the VMI&TPL inventory and transportation strategy. The result shows that the logistic cost can theoretically reduce.