Study On Optimization And Control Of Multi-echelon Inventory

With the rapid improvement of the economic globalization, experts predict the market competition in the 21st century is not among enterprises but their supply chains. How to rapidly and effectively meet the customers’demand with low operational costs has been one of the challenge problems being faced by many enterprises. Consequently, the inventory problem has become the focus in academic research and industrial societies worldwide.The study covered in this dissertation is based on the development and implementation of“Inventory Management”as part of VMS (Vendor Merchandise Stock) for Lotus supercenter. It aimed at optimization of multi-echelon Inventory based on the supply chain management. In this dissertation, the inventory optimization was studied from the multi-echelon Inventory point of view. This dissertation begins with the introduction to the background and position of the research subject addressed. The second chapter introduces the related fundamentals of inventory management, and further discusses the supply chain oriented inventory control. Based on the supply chain and inventory theories, Chapter three illustrates the inventory problems in the supply chain management. The chapter four analyses and evaluates the existing supply chain management modes, such as VMI (Vendor Managed Inventory) and JMI (Joint Managed Inventory). The chapter five studies on the multi-echelon inventory model. The chapter six describes the development and implementation multi-echelon inventory mode for Lotus supercenter VMS. The conclusions and future work are addressed in chapter seven. .