| Consignment Stock (CS)is a theory of inventory management that the vendor puts its stock (raw materials, semi-finished or finished products) into the buyer’s warehouse and is paid by the buyer when the goods are used or sold to the buyer’s own customers.Nowadays, this practice has been widely adopted in telecom industry due to it can bringlower dead inventory rate and higherinventory turnover ratio to telecom operators. But it will also transferring some risk from the telecom operators to the vendors, what’s worse, it may harm the vendor in most of the situations.The vendors have to apply CS though they complain about it.So the issue of creating a risk-sharing supply chain and relieving vendor’s pressure to realize a win-win relationship should be paid more attention to.Based on the research in home and abroad as well as the practical use of telecom industry, we choose Joint Managing Inventory (JMI) as the objective improvement management, which is recognized widely by academicsfor its efficient.JMI can enhance the efficiency of supply chain by coordinating the vendor’s production strategy and the buyer’s ordering strategy.The cost models of each partner in CS and JMI are established and compared in order to verify the efficiency of JMI is higher than that of the CS.Then introduce some coordinationstrategies to coordinate supply chain systems so as to realize switching from CS to JMI. Details are as follows:Definitions of CS and JMI applicable to Telecom operators are introduced in the dimensions of material flow, information flow and cash flow. It can provide the basic theoretical foundation for the succeeding chapters, and make the conclusions more suitable for the telecom industry to guide the practice of inventory management.We study a two-stage supply chain including one supplier and onebuyer, modeling cost models of each partner in CS and JMI under deterministic demand as well as stochastic demand. By comparing the cost models, we draw conclusions that JMI is better than JMI in both deterministic demand and stochastic demand.We also design proper coordination strategies assuring better profits in JMI for every supply chain partner in order to finally achieve switching from CS to JMI.Give the conclusions that JMI is more efficient under the deterministic demand, we analyze the mechanism of the coordination strategies which we have chosen. Combining the material feature of telecom operation, we give some suggestions about the application scenarios of each coordination strategy.Finally, the whole content was summarized, important conclusion and the future research direction was discussed and prospected. |
