Research On The Analyse And Design Of Supply Chain System Based On VMI

Vendor Managed Inventory (VMI) is a new and representative supply chain inventory management tactic, which overcomes the "Bullwhip effect" of the traditional stock control mode availably and improves the operation efficiency and competitiveness of the supply chain. According to the characters of supply chain system based on VMI including complexity, expansibility, dynamic and collaborative state, the objectives of this paper is to support the management of the supply chain system based on VMI in theory and technique.In the first place, the theory, principle and working flow of VMI are discussed, especially on the base of compare with traditional PMI (Purchaser Managed Inventory),the article summarizes the guide idea and working flow of VMI and points out how to put it into practice. Secondly, the author analyzes the support system and operation environment of supply chain based on VMI, and we comes to a conclusion that the supply chain partnership, organization and structure reengineering, information and knowledge sharing, ECR (Efficient Consumer Response) and CPR (Continuous Replenishment Procedure) are the foundations of the smooth operation of supply chain based on VMI. And emphasis was given to the organization reengineering and knowledge sharing. Then on the base of analyzing the necessity and feasibility of the supply chain system based on VMI, the paper gives out the reengineering technique, principle and four organization and structure modes. We also describe the necessity and importance of importing knowledge management system into supply chain based on VMI and put forward the knowledge management portal based on web and network mode of knowledge integration in supply chain. Finally, the article proves that VMI benefits he supply chain companied with much risks, and discusses two effective measures to reduce and prevent those hazards. Also the risk pooling mechanism and profit sharing model are described in the end.