The Research Of Inventory Decision Support System Based On VMI

Abstract:With the gradually intensifying international competition in the market, the commodity end-user’s individual needs and expectations has become the main theme of the competition in the market. Market competition between enterprises transforms to that between supply chains, traditional distribution and inventory management supply chain cannot rapidly response to user’s demand. As a new type of supply chain management theory, Vendor Managed Inventory (VMI) has changed the traditional inventory management model which overcomes several problems of the traditional one such as the separate management bureaus, asymmetric information between upstream and downstream enterprises and the inability to respond quickly to market to meet users etc, so as to optimize the purpose of supply chain efficiency, and to reflect the supply chain coordination and integration of management thinking. The Inventory management mode of Chinese enterprises is relatively backward, the redundant stock share ratio, slow turnover are the common problems in most businesses. In this case, the VMI has more far-reaching significance. Therefore, to study on the appropriate VMI inventory model, and use a scientific and systematic approach of decision making to support inventory decision can dig deeper appreciation potential of the supply chain. In order to explore an effective way to implement VMI Inventory Decision Support System in the supply chain, firstly the article analyzes and summarizes the existing domestic and foreign researches and case studies, then studies on inventory decisions problems that based on the VMI strategy and finds out that the lack of research for VMI Inventory Decision Support System, followed by the introduction of the inventory decision model to compare the performance of VMI, and analyzes the inventory-related costs affect on the different cost structure in the VMI policy. Finally, it combines the computer information technology and VMI inventory decision-making process to discusses in detail VMI inventory-based decision-making support system functional requirements and modular design, constructed based on data warehouse decision support system, to auxiliary enterprise decision-makers make decision and control inventory in order to achieve the implementation of VMI to reduce supply chain inventory costs and improve profit level of purpose.By building an effective inventory decision support system, the use of advanced supply chain management and inventory model that aimed at improving the supply chain inventory business out of efficiency, plays to the advantages of VMI strategy, while enhancing the cooperation and mutual trust between the upstream and downstream enterprises in the supply chain. Supply chain can have an effective synergy, avoid the phenomenon of the "bullwhip effect", eliminating the backlog of inventory and cost of losses arising as a result of asymmetric information, and making the supply chain’s overall competitiveness to be improved significantly.