Mary Kay Vendor Managed Inventory

Inventories through the supply chain are fragmenting, focusing on their own fields in circulation with their own inventory control strategies in a long term. This would incur an inevitable emergence of the distortions demand - the bullwhip effect. It is apparent that various aspects of inventory abnormal fluctuates caused by gradual amplification of the demand in the supply chain affects the efficiency and corresponding velocity in the supply chain. Such sort of situation could hardly be transformed by traditional inventory management. A new inventory management method has been arose in recent years in this way--- Vendor Managed Inventory. It has changed the traditional upstream and downstream enterprises of inventory management methods, that is, from fragmenting to effective integration of resources in circulation, with the cost reduction accompanied. The implementation of VMI could effectively lower the unnecessary inventory and quicken delivery speed, also the responsiveness of the market could be accelerated, which generates a profound impact for the entire supply chain management to improve efficiency. This kind of ideology for integrated supply chain management could adapt to rapidly changing market requirements, effectively tackle the possible inventory problems under the circumstance of supply chain management. It is a newly representative ideology for inventory management.Mary Kay China is one of Chinese largest cosmetics companies. The company has to enlarge the market share by continuous updating products to fit the fiercely market changing. This would arouse the phenomenon that material purchasing could not keep up with market changing. As the original inventory management system of Mary Kay China is scarcely feasible and ineffective for the inventory control, it is hardly get inventory risk controlled as a whole. In this way, inventory management system needs reform.The assay is constituted by six chapters, which begins with describing the background and significance of the study, and also the case studying for vendor inventory management both at home and abroad. Secondly, expounding the theory of VMI based on detailed inventory management and other related theories, and also introducing the VMI practice situation in Bosch for futher. Then, analyzing the feasibility for VMI implementation in Mary Kay China by company's inventory management current status and process studying, Building up a program for Mary Kay China supplier inventory management is through the objectives, principles and mode studying of the company's VMI implementation in Chapter Four. Chapter Five is concentrated on studying the Mary Kay company VMI program implementation, and establishing an evaluation system to assess the effect of implementation. A booming future development prospects will be extend at the end of the summary.In this paper, the implementation of VMI project in Mary Kay China is researched, which has an important theoretical and practical significance for VMI project evaluation and implementation.