A Theoretic Analysis On Mechanism And Countermeasure Of VMI

Effective inventory management is of great importance for enterprises to gain long-term competitive advantage with supply chain as the dominant supply mechanism. Inventory management model is one significant part of inventory management. With the aggravation of competition, more and more attention is paid to the study on the method of the inventory management model. Traditional inventory theory regards inventory as one separate part of enterprise management. This thesis analyzes vendor management inventory under the situation of supply chain, which is the new method of inventory management, and studies its operational mechanism and influencing factors. First, the whole paper is oriented by vendor management inventory under the situation of supply chain, and analyzes its two aspects, which includes its mechanism and countermeasure. Secondly, the paper views the members on the nodes of supply chain as rational decision makers, and explores the reasons why vendor management inventory should be adopted from the perspective of economics, its countermeasure studied in 4 aspects: common profit, technological support, operation steps and relationships found on contract and mutual trust. Based on the analysis of the evolutionary reasons of vendor management inventory, this paper expounds the key of implementation of vendor management inventory, management information system and related procedures. Then, the paper the long-term and short-term economic benefit from the implementation of vendor management inventory. Finally, the paper summarizes the application and development prospect of vendor management inventory in China, and put forward my own advice.