Vmi Environment Downstream Of The Steel Company Supply Chain Management Optimization

Under the increasingly intense competitive marketing circumstances, management methods inside enterprises become more and more improved and matured. But increasing profits by improving labor productivity and conserving internal resources are becoming gradually narrow. So to speak, competition among enterprises is no longer a competition between individual enterprises but between their respective supply chains. The managers have to face the problem that how to find out a new source of profit.Since the 1980s, the study of supply chain and supply chain management had provided a new perspective to this problem. And research of supply chain management has become the focus both of the business and academic community. During the process of the research and application of supply chain management, the advantage of improving the competitiveness of enterprises by supply chain management and supply chain optimization become increasingly prominent. At the same time, some supply chain management optimization theorys become much more popular, such as Vendor Management Inventory (VMI), Information Sharing theory and Supply Chain Cost Management theory (SCCM).On the basis of Supply Chain Management Optimization theory research domestically and abroad, this paper mainly analysis and simulate the supply chain optimization management. The paper analyses the down steam of Steel Company to find out the existing problems. And in the next part, the paper uses VMI theory and information-sharing technologies to design optimization measures to optimize the supply chain. Furthermore, the paper applied the optimization measures to the supply chain simulation model to test the effectiveness. In the last part, combining with supply chain cost management theory, the paper establishes the cost objective function under VMI system to find out the optimized solution for enterprise decision makers.Based on the mentioned above, the paper concludes that VMI model and information-sharing technologies, which reflects the integrated ideas of supply chain management, have broken the fragmentation of the traditional mode of management. And as an important part of supply chain management, supply chain cost management has become the third source of profit of enterprises. Application of supply chain optimization theory is an inevitable trend.