The Research Of Vendor Managed Inventory Strategy In Downstream Enterprises Of Supply Chain

The competitions are converting from among enterprises to Supply Chains with acuter of world market competition. More and more enterprises have applied Supply Chain Management strategy to harmonize their inside and outside circumstances. The idea and aim of Supply Chain Management is that using lower cost to provide maximal customer value (including products and services) through cooperation and information sharing between supply chain members. It needs synchronized activities of each supply chain members. One of most important policies is integrating inventory management to cut down the whole inventory cost of Supply Chain and enhance its competitiveness. The Vendor Managed Inventory Strategy is the concentrated expression of this idea.The research target of this dissertation is the Vendor Managed Inventory Strategy in the downstream enterprises of Supply Chain. The author firstly analyzed the causes of VMI's appearance and influencing factors, including the benifets for vendor and its customer brought by VMI and key factors, after analyzing the problems of traditional inventory strategies in the environment of Supply Chain Management. Subsequently the author analyzed the inventory controlling process under the VMI. And based on this, the author applied mathematical models to analyze the VMI's optimized effect to the Supply Chain, pointing that the VMI can reduce the impact of Bull Whip, cut down the whole inventory cost of the Supply Chain and improve the Supply Chain's flexibility. At following, the author set up a cost and benefits distribution mathematical model for vendor and its customer in short time and long time. At last, the author has expounded the VMI's modes, technical foundation, implementation steps and should be noted problems. The paper gave a demonstration through analyzing the VMI between a television producer company and its customer.