Xcmg Distribution Aspects Of Inventory Management

The distribution is more and more important in the supply chain where the customer requirement is quickly responded. But the traditional distribution and inventory management is difficult to satisfy this need. Vendor Managed Inventory(VMI), which breaks through the traditional inventory management where each does things in his own way, embodies integration managed thinking of supply chain.System Dynamics is a subject based on feedback control theory that analyzes qualitative and studies quantitatively the dynamic behavior of the development of the large complex nonlinear system in virtue of computer simulation technology.The paper studies VMI managed thinking and the basic theories and the status quo about System Dynamics. Taking advantage of modeling platform STELLA/ithink, the traditional basic model and estimative model are built based on the Agent managed inventory(AMI) in existence of Xuzhou Construction Machinery Group Co., Ltd .(XCMG) ; the VMI basic model and estimative model about XCMG are built based on the theories about VMI. The models study the difference of mechanism about AMI and VMI, using inventory level, inventory carrying cost, inventory turnover rate and customer fulfillment ratio as key performance indexes. The strategies of AMI and VMI are simulated and analyzed quantitatively. The simulation results shows that the model can illustrate the dynamic attributes of enterprise systems after the strategy of VMI inventory management is executed.