Profit Allocation Under The VMI Integration Replenishment And Dispatching Mode

With the rapid expansion of economic globalization and information technology, vendor management inventory (VMI) has attracted more and more extensive attention as a new management model whether in theory or in practice. Its superiority has gradually appeared. After implementing VMI in supply chain, retailers inventory cost and total inventory cost of supply chain can be reduced. But the reduction of retailers inventory cost is at the cost of the increase of supplier inventory cost. To improve the implementation of the enthusiasm of VMI supplier, we have to coordinate the profit of suppliers and dealer. Therefore, this thesis makes further research on profit allocation under VMI replacement goods integration mode.First, this thesis summarizes influencing factor of income distribution for cooperation enterprise under VMI mode. Then using the economic order quantity model calculates the cost of the member enterprises and the whole supply chain when it doesn’t implement VMI. After that on the analysis of deliver goods cost, replenishment cost, inventory holding cost and customer’s waiting cost within the replenishment cycle, it respectively establishes VMI replacement goods integration model based on time and quantity. Using of MATLAB and multivariate the function extreme value theory solve them. Finally, it utilizes Shapley value method to distribute the profits which are calculated by the difference between the cost of supply chain for not using and having used VMI. Considering the limitation of the Shapley value method, the thesis amends the results of it using innovation factor and gets the new interest distribution results. Then respectively considering risk and investment, it calculates two kinds of distribution results. To solve the inconsistency problem for a variety of interest distribution results, this thesis uses the comprehensive benefit of negotiation which is based on TOPSIS. This method can determine weights of the different interest distribution and adjust income distribution for the member enterprises in the supply chain. Implement VMI can reduce inventory cost of retailers and the supply chain total inventory cost. But the profit allocation may reduce the enthusiasm of cooperation supplier. And the new income distribution scheme will be fairer and more reasonable, easier to be accepted by supply chain members and improve the enthusiasm of supplier to implement VMI.