Research On Supply Chain Repleshment And Constract Coordination Mechanism Under VMI

Advances in competition environment and management models have increased boththe scope and intensity of competition between organizations.During the last few years,the focus has shifted from the enterprise level management of supply chains toenterprise level management of supply chains. In order to be the winner, each companyshould make full use of its own resources, for example, constructing coordinationmechanism between enterprises within a supply chain. Vendor managed inventories(VMI) which focus on enterprise process information management was established onthe theoretical base of supply chain.The purpose of supply chain coordination is toestablish effective trust-enabled and incentive mechanisms and reasonable supplychain constructs,in order to be adopted to the changeful markets. Therefore, this papertakes the VMI environment as the background, and researched the supply chainconstract which attempted to make contributions to realize supply chain coordination.This paper analyzes replenishment model by considing previous research, andconstructing a periodic replenishment mathematics models,considering a two-echelonsupply chain consists of a single supplier and multiple retailers. Upon these, I study theprofits under disperse policy decision. Then the vender bring the supply chaincooperation without revenue sharing contract in order to increase the profits. Lastly,coordination mechanism was introduced, the revenue sharing contract is introduced tothe models in order to improve the supply chain’s performance and realizecoordination out．On this basis, this research compares the differences between themodels with backorder and without backorder. And then.the correlations of relatedparameters and the impacts of them on the profit are analyzed.The model was tested by building numerical examples,using the MATLAB7.0software. The distributed decision-making supply chain is compared to the cooperateddecision-making one and the changes of different variables and the impacts of them onall parties’ profits are analyzed. The results show that the mechanism can coordinatethe profit of VMI supply chain members effectively and achieve the purpose ofmaximizing system benefit. The results show that no matter what kind of structure，distributed decision will lead to low efficience.In cooperated supply chain, all parties’profits are higher than that in distributed decision-making ones.But coordinated supplychains can get the highest profits,and these profits can be appropriatly distributedbetween the members of supply chain under constract.