Comparative Research On Integration Models Of VMI And TPL Based On System Dynamics

As a new theory of supply chain inventory management, vendermanaged inventory (VMI) has been widely recognized. By integrating VMIwith third-party logistics (TPL), it increases the supply chain’s hierarchy andcomplexity, which will bring the complicacies in VMI operation. Althoughmany studies discussed the feasibility of VMI and TPL integration andanalyze the efficiency of supply chain before or after the combination withTPL, current researches are relatively loose and there lacks a comprehensiveguide with the VMI and TPL integration framework. Therefore, to study aunified and feasible framework of VMI and TPL integration, put forward thestandard dimensions of typical model of integration and analyzeapplicability conditions of the model, become one of the important contentsof the study.The research status of VMI and TPL has been summarized firstly, andthree integration models has been put forward based on four dimensions,which are Isolated Integration Model, Cooperative Integration Model andAlliance Integration Model. On the other hand, in order to guide the practiceof enterprises, the applicability framework of VMI and TPL integrationmodel is proposed according to theoretical analysis and case studies.Meanwhile, Vensim is used to do the simulation of the system dynamicsmodels and the results are analyzed in several aspects such as supplierproduction rate, inventory levels, customer service level and Bullwhip Effect.The study shows that Alliance Integration Model could bring more efficientproduction rate, reduce supply chain inventory, raise service level andreduce the bullwhip effect, which is more efficient than the other two models.