Vendor Managed Inventory Based On System Dynamics Simulation Study

With the development of science & technology and the innovation of management ideas, enterprises increasingly realize that the competition has not merely happened between enterprises, but mostly between the supply chains. The study on supply chain becomes hotspot in recent years.This paper focus on the deficiencies of the supply chain research on VMI existed in our country at present, the auther do some research on "supplier-the Third Party Logistics-distribution center" aiming at single product and vendor managed inventory, the main research contents are as follows:Firstly, retrospect to the study on supply chain of VMI both domestic and abroad, the auther points out its deficiencies that entire supply chain was less studied and lack of dynamic and flexibility, then put forward the main research points of the thesis.Secondly, the basic theory of supply chain and the design of its system was expatiated, then as a middle working platform, the third-party logistics (TPL) is introduced to perfect the traditional model of VMI by using system dynamics as a tool, the dynamic simulation model of the supply chain to the single product was set up by using vendor managed inventory.Finally, according to the theory of system dynamics, by using the Vensim_PLE software, the paper do some quantitative analysis about the key parameters in the process of supply chain, studies the influence of bottleneck and bullwhip effect in the entire supply chain, finds out the influence of system stability and the average system inventory on VMI causing by each of the logistics parameters. In order to confirm concrete implementation tactics of supply chain under efinite conditions, the dynamic model was analyzed and optimized from the view of sensitivity, bullwhip effect and bottleneck,working as a strategic laboratory of supply chain and then giving some good advises to help the enterprise to make correct decisions.