Font Size: a A A

On Supply Chain Inventory Management

Posted on:2005-01-03Degree:MasterType:Thesis
Country:ChinaCandidate:J NieFull Text:PDF
GTID:2206360122485954Subject:International trade
Abstract/Summary:PDF Full Text Request
Holding certain amount inventory is necessary for normal enterprise running. Inventory can cushion the uncertainty of production or sales from four aspect: Time , Place , Variety and Quantity. It also can help enterprise obtain scale economy. But on the other hand , inventory cost is huge , almost 20% ?0% of product sale. In China, inventory cost per year is about 5% of its GDP. Therefore, if there are some good solution to the inventory issue, the economic benefit will be huge.In 21st century , under the background of economy globalization, market competition is more vehement. More and more enterprise realize that only relying on their own resources is hard to win in the fierce competition , and the competition between enterprises has developed into competition between whole supply chains. The new direction for enterprise management is supply chain management (SCM) .SCM emphasize enterprise alliance and the whole supply chain optimization. Under supply chain management condition , it requires that inventory should be integrated and optimized.However, In real economic life , tradesman , wholesaler, producer and supplier all use traditional inventory control methods , for example , EOQ model .Though these methods are applicable and effective to some extend , they only consider inventory from their own points , lacking the thought of whole supply chain integration and optimization , so these enterprise cannot meet the need of supply chain management.The enterprise at each node in the supply chain make the production and supply decision only on the basis of information from down river node. Therefore, the unreal demand information will expands gradually from down to up, which will lead to inventory amount getting larger and larger. Just for the effect of demand information expanding, the supplier at the up river generally have to hold larger inventory than enterprise at the down river, which lead to overstock in the whole supply chain. This phenomena widely exist in supply chain of car-making, computer-making .commodity production industry. Professor Forrester first discover this phenomena , and name it "bullwhip effect" . This phenomena is source of huge inventory in the supply chain management.The thesis is just want to work over the inventory control under supply chain management , by way of sharing information and collaborating the whole supply chain enterprise, to overcome "bullwhip effect" , and realize the inventory integration and optimization of whole supplychain .which can reduce inventory level , that means lower capital tie-up and inventory holding cost , it also can boost customer service.The first chapter is mainly about the general introduction about the inventory management and the theory development of inventory management. On the basis of the first chapter , the second chapter presents the basic theory of supply chain management , and after analysis the inventory control issue under the supply chain management condition, I sum up five inventory issues , that is lack of supply chain integration , lack of information sharing , lack of cooperation and harmonization, simple strategy for the inventory control , lack of the thought of customer service. Aiming at the five issues mentioned , the third chapter discuss four inventory control model under supply chain condition , they are Vendor Managed Inventory (VMI), Jointly Managed Inventory (JMI), Multi-level Inventory Control and Collaborative Planning Forecasting and Replenishment(CPFR). In chapter four, I put forward three keys in implement of inventory management under supply chain condition , the three keys are building of supply chain information system , Business Process Reengineering(BPR), Inventory Management Performance Evaluation System. In the end of thesis , I make the sum-up , and bring forward some suggestions about the research direction and content in the future.This thesis has following innovative points: l)It has a detailed theory analysis on the feasibility of VMI , one of the inventory management model unde...
Keywords/Search Tags:Supply Chain, Inventory Control, Information Share, Vendor Managed Inventory (VMI)
PDF Full Text Request
Related items