A Study On System Dynamics Simulation Of VMI Inventory Control In Automotive Supply Chain

Automotive supply chain is recognized as the world's most complex supply chain system,and inventory is a link on each node in the entire automotive supply chain and the importantdriving element for inventory control and management of the supply chain, but also therealization of the value added chain one of the important part. Inventory for the overallstability of the supply chain plays an important role in effectively integrating purchasing,materials management, production, distribution, marketing and logistics. Reducing the supplychain bullwhip effect, information imbalance, inventory costs, To maximize the overalleffectiveness of the enterprise.Given the shortcomings of the traditional automotive supply chain inventory fragmented,paper selected to automotive suppliers and car dealers consisting of two levels of the supplychain as the research object, Adopting a new inventory management-vendor inventorymanagement (VMI), to explore and optimize the automotive supply chain inventorymanagement. VMI is an ideal win-win strategy, based on mutual trust, establishes aninformation sharing platform, the vendor-managed inventory, to ensure the needs of the endcustomer premise, each node enterprises reduce inventory levels and costs, making maximizethe effectiveness of the entire supply chain. Paper introduces system dynamics as a researchtool, the automotive supply chain inventory management is a multi-node, multi-target andmulti-factor complex dynamic systems. So the system can overcome the disadvantages of thetraditional dynamics, the system can dynamically simulate the dynamics of the relationshipbetween complex systems and the real mode of operation.This article establishes traditionaland VMI inventory control models of automotive supply chain base on the basic theory.Inventory control models simulate under four different simulation demand patterns, thetraditional simulation curve and simulation data and VMI control mode simulation resultswere compared and analyzed. VMI inventory control mode can reduce inventory levels andthe "bullwhip effect" and greatly improve the efficiency of the automotive supply chain.