Research On Operation And Cost Of Optimization In Vendor Managed Inventory System

With the increasingly fierce market competition, supply chain management has become the key strategic competition resources of enterprises. VMI (Vendor Managed Inventory) came into being in the 1980s, and is successfully being carried out by more and more companies. As a modern inventory pattern under supply chain management, VMI connects the companies in the supply chain and avoids the problems of traditional pattern such as asymmetric information, big forecast errors and high inventory costs by sharing information of supply and demand forecasting and decision-making and mutual cooperation. The whole supply chain is optimized in a systematic, integrated managementThe thesis firstly introduces the definition of Vendor Managed Inventory, the basic idea, features, support technology and implementation, analyses of distribution of responsibilities among members of the VMI system, and rules related to the division of responsibilities are summarized as six elements, and discuss the relationship between the distribution rules. Analyses of VMI operation process by using event sequence diagram, in a typical VMI system operation process diagram of an example, built a VMI operation process model based on event sequence diagram. Discussed key impact factors of VMI system successful operation.Then analyzed the cost composition of the VMI system, and introduced the total cost concept of VMI system. A VMI cost model based level of service, shipment volume, lead time and safety stock in case is built, solved by GA, simulated, and effectiveness of the mathematical model is verified. In order to improve the actual operational cost optimization, methods of the VMI system implementation cost optimization is discussed and can be from three aspects: the choice of supplier, the allocation of resource and continuous optimization of operational process, to achieve cost optimization.