A Research On The Integration Of Procurement Combined With Inventory Management Based On The Partnership In The Tobacco Industry

Procurement and inventory has always being the hot topic in the field of application of industry and study of theory. This paper proposed an integration model as joint procurement and vendor managed inventory in tobacco materials based on partnership and an income analysis based on it, not only reduces operation cost and increases total income in the supply chain but also makes for the development of tobacco industry. The background is the study of partnership in the tobacco industry and the focus is the choice of model of procurement and inventory. A integration model joint procurement with horizontal alliance combined vendor managed inventory with vertical alliance is proposed based on an system analysis of our national tobacco industries' actuality and the intensifying current of horizontal relation from strategy alliance inherited the study of relationship from upriver to downriver in the supply chain, then the operation value in practice is discovered after the income analysis.The paper's work mostly as follows: Firstly, the characteristics of partnership and the influence and development to the procurement and inventory management theory are discussed that concluded the combination currency of procurement and inventory management. Secondly, an integration model as joint procurement combined vendor managed inventory based on partnership is proposed after an analysis of competition environment and development of procurement and inventory management of our national tobacco industry. Then, the meaning of application to the integration model is discussed. Also partners benefit from the model and gain "double-win" through income analysis to the integration model. The paper's character lies in the integration model of joint procurement combined vendor managed inventory applicable in our national tobacco industry based on the strengthening relationship of partners' from horizontal and vertical dimension and the elementary study to the income to implement the new model.