The Model Research And Strategy Analysis On VMI

This paper mainly studies the supply chain inventory decision question under VMI. Itbuilds a vendor-managed inventory model without shortage. And on the foundation of thismodel, it builds another model allowing shortage with partial backlogging. The influenceson the different costs are given by sensitivity analysis of the main parameters.In the VMI model with partial backlogging allowing shortage, when the coefficient oflost sale is increasing, the cost of vendor has a decreasing tendency, while the cost ofbuyer and VMI are increasing. When the service level is increasing, the cost of vendorhas a decreasing tendency, while the cost of buyer and VMI are decreasing.In the VMI model with partial backlogging considering the inventory of raw material,although considering the inventory of raw material, the main parameters'influences tothe different costs have the same tendency with the VMI model with partial backloggingallowing shortage.