Study On Railway Fuel Inventory Management Based On VMI Model

Inventory is an important part of the railway fuel supply. Efficiently manage the inventory is vital to reduce operating costs. Vendor Managed Inventory is a method of having an integrated management thought of supply chain developed in recent years, it means the inventory management right is transferred from downstream retailer to upstream vendor through bilateral consultation. In the context of the reform of the railway fuel supply, this paper does research in following three areas concerning railway fuel inventory management using the method of vendor managed inventory.First, optimize the railway inventory business management. Describe the phenomenon of existing rail fuel inventory management and point out the problems, use VMI method to optimize the inventory management processes, the responsibilities of inventory management body and the inventory management business. Also the difficulty and advantage of VMI implementation in railway fuel inventories management are summed up.Besides, establish the model of VMI inventory control. Using the feature that vendors can decide on purchase time and scale based VMI, inventory cost control model is built. Model building is divided into two phases, first the fuel purchases model is established based on domestic refined oil pricing mechanism, then use the quantity order method to build the fuel allocation model quantitative model based on purchase model, obtain the optimal order quantity and inventory costs. Through the example verification of Guangxi coastal railway the VMI method can reduce the cost of fuel inventories railway is concluded.Moreover, develop the inventory decision systems of VMI. Based on the technologies of.NET framework and database. C#as the development language, Microsoft SQL Server2000as data base server, the system is developed. Systems include data database, parameter input and planned output. By entering the current changes information in oil prices and inventory data of oil points,get fuel procurement and allocation plan based VMI method, which can provide more scientific decision-making reference for railway procurement inventory management.