VMI-TPL Integrated Model Research For Auto Spare Parts Based On System Dynamics

With the pace of economic globalization speed up, competition between enterprises hadbecome more and more fierce. The competition had gradually shifted to supply chainperformance competition. In the traditional inventory management model, each node in thesupply chain enterprises was lack of information sharing with each other, and they alsodeveloped inventory management strategy independently, resulting in progressively largerdemand step by step, and all this had resulted in excessive inventory and then increasedlogistics costs. Co-operation with supply chain system is of great significance for improvingthe auto parts supply chain overall competitiveness.The research object is single vendor, single central bank and a single spare parts distributorin automobile spare parts supply chain system, screening the four main dimensions to buildVMI and TPL integration framework, and it includes the automotive spare partsreplenishment decision-making power, TPL, suppliers and downstream distributorsinformation sharing, the third party logistics service level and TPL, the level of resourcesinvested. Depending on the four different dimensions, this paper proposed three mainintegrated model automobile spare parts between VMI and TPL, namely a single integratedmodel, the limited integration of the integrated model and strategic synergetic integrationmode. Among them, a single type integration model namely third-party logistics,when it isinvolved in the supply chain VMI, there is no information exchange between inventorythird-party logistics and supply chain companies downstream enterprises.The third-partylogistics companies with the suppliers and customers remain independent among each other,the content of their cooperation was relatively simple, this integration is merely a simplelinear integration; Under the limited integration of the integrated model, the degree ofinvolvement between the third-party logistics and supply chain VMI’s has become deeperthan a single type of integration model, the cooperation of their relationship is not limited totraditional trading relationships.TPL has some initiative, but the their cooperation is based ona short-term partnership.In the strategic synergetic integration model, the relationshipbetween the suppliers and the third party logistics are strategic alliances, they need to takerisks together, shared interests.The third-party logistics enterprises have their own set ofdistribution centers, the supply chain downstream node enterprise and third-party logisticscan exchange the information timely. This integration model can take full advantage of TPL,through centralized control the inventory; and reduce supply chain inventory managementand operating costs.Combined with system dynamics theory, established the traditional automobile spare parts inventory management model. Through the FAW car door welding assembly of a distributorspare parts example simulations that car spare parts of VMI and TPL based integrationmodel,they integration into three models.The three models made the cost of supply chainlower than the traditional management mode. and auto spare parts bullwhip effect afterintegration has been effectively alleviated, including strategic synergy effect, it is the mostobvious type of integration model to prove the validity of VMI and TPL integration modelthat the paper has established. This paper has practical significance for the automotive partssupply chain inventory control.