Research On Approach For Vendor Managed Inventory In A Aircraft Manufacturing Company

This dissertation analyzes the current status in inventory management of AAircraft Manufacturing Company, and discusses on how to solve the problems, suchas high stock level, high cost, low turnover rate, and complex procurement procedure,without affecting production stability. It takes the inventory management ofnon-flying consumable as example, working over the methods to lower stock level,reduce the appropriation of capital, save the inventory cost, and increase the capitalturnover rate.This dissertation bases on the actual situation, and concludes the main reasonswhich result in the inventory problems: the imported products have high price andlong lead-time, the transportation cost and taxation are high, the current stock hasmany inactive items, the procurement procedure is complicated, and the application ofinformationization is not sufficient. These elements result in the high level ofinventory, and lead to wastes. In order to make up for these disadvantages, and keepthe company developing sustainably and healthily, the company should adopt finermanagement method, such as the Vendor Managed Inventory (VMI) theorymentioned here.VMI is a newly introduced inventory management method in recent years. It hasbeen practiced a lot in some foreign companies, and also got successful experience insome Chinese companies. It can actually reduce the total cost of the supply chain, andbenefit both the vendor and the customer. Due to that aircraft manufacturing needsvarious materials, this dissertation suggests to implement VMI in A AircraftManufacturing Company: optimize the stock structure according to productiondemand, perform ABC analysis to manage the inventory in different categories, andchoose the non-flying material inventory to be managed by Chinese vendors. Theimplementation of VMI has3phases: preparation, execution, and evaluation. Thegeneral purpose is to establish trustable and reliable strategic partnership between thevendor and the customer. It shall achieve the target of inventory level reduction, bysharing the resource, and replenishment through the SAP platform. To correctlyestimate the effectivity of VMI, this dissertation introduces a2-stage supply chainmodel to verify the economic benefits of VMI. Based on the achievement, we search for the foreground and direction forenhance supply chain cooperation and continuous improvement, such as applicationof CPFR.