Research On The Cost Model Of SCM And Simulation Based On Vendor Managed Inventory

The competition amongst companies has evolved into the campaign amongst supply chains in current society. Controlling inventory is one of the most important subjects under the circumstance of Supply Chain Management. Compared with the traditional inventory control, the modern inventory control has some new characteristics and requirements because the enterprise organization and management model has changed. A new inventory control strategy comes forth, which can suit for the new state of managing demand.In order to better understand VMI, firstly, the corresponding knowledge of supply chain and SCM is introduced in this paper, integrated with a comprehensive introduction to VMI and its core ideal, and a detailed depiction of its business processes. Secondly, compared the supply chain inventory management methods with VMI, it is proved the VMI is an effective supply chain inventory management method. Lastly, a two- level supply chain inventory management system is established to discuss the cost of SCM in the VMI system. The thesis can confirm that VMI can decrease considerably the inventory level and total costs through mathematic model analysis and calculation.In order to better practice VMI, the model of two-level supply chain system is supplier plan production plan goal in aim of minimal cost of SCM. This problem is resolved with mathematic model in view of cost. At the same time, the optimization algorithms are applied to solve the problem, such as Particle Swarm Optimization, Branch and Bound, Linear Search arithmetic etc, integrated with an engineering example problem. The result was compared with dissimilar arithmetic. Because the result is better than others with solving the problem based on PSO, regenerate a new arithmetic based on the old PSO, customize a means like this problem. The more analysis of parameter of model is discussed based on the example problem with different coefficient of cost. In order to overcome limitation solving the problem with model at static state, the thesis studies the impact of uncertain dynamic factor to VMI with Arena software, demonstrates again from a simulating standpoint to the validity of VMI with traditional SCM and VMI simulative model after validate validity. And aim at production plan model to research dynamic outspread simulating. At last, according to the results of the research, we can know that the VMI reduces the total costs of the supply chain, enhances the performance of supply chain and also has good applied foreground.In addition, the algorithm for PSO is use to optimize the discrete combinatory optimization problem and the approach for decision-making are rational with simulation software in paper are also significant, therefore, further research on above problems are valuable.