Study, Based On Vendor Managed Inventory Supply Chain Strategy

With the speeding process of economic globalization and increasingly acute marketing competition, the demand of customers takes on more and more individuality and diversity, Which renders enterprises face bigger uncertainty and compel company to adopt advanced SCM(supply chain management) thoughts and tactics to enhance their function efficiency and competition advantage.In the first part of paper, the author introduces the current development of SCM home and abroad. Then, on the basis of SCM theory and the question of SCM application in our country, the author analysis bull-whip effect and propose some weakening countermeasure, and build a math model of SCM which apply VMI(vendor managed inventory) tactic. In the model, the author contrasts provider and shopkeeper's vendor-control tactics and corresponding average vendor level in condition of non information sharing, full information sharing, and VMI with full information sharing. Finally, the paper studies what's the application value of VMI tactic in SCM and how demand relevancy and deviation affect vendor level in SCM. The research result shows that the application of VMI can effectively reduces total vendor level of SCM with the reduction of demand uncertainty and lead time.