Inventory Management HE Company VMI

Economic integration has become the main trend in international economic development, which giving enterprises a rare opportunity but severe challenges. The changing demands of the market make enterprises facing all kinds of the pressure that to shorten delivery time, improve quality, reduce costs and improve the service. Inventory cost is one of the important parts in the cost competition of the supply chain. The effective management of inventory costs has a major impact on enterprise’s associated cost controls; so many companies actively explore the methods and techniques to improve the level of the inventory managementVMI (Vendor Managed Inventory, VMI) is a new kind of inventory management mode and it is based on supply chain management. Compared with the traditional inventory management strategy, it is a kind of system theory of inventory management.In this thesis, we first briefly analyze the inventory management strategy. After that, the state of the art about VMI at home and abroad is introduced. Furthermore, the definitions, characteristics and principles of vendor managed inventory (VMI) are presented respectively. Then we took the HE company as the research object to research on the supply chain management of the current mode of operation and analysis of the existing problems, proposed through the implementation of VMI to improve the feasibility of the programmed and the specific implementation measures, and by comparing the HE implementation of VMI, the qualitative and quantitative analysis of VMI implementation, finally summarizes the benefits and necessity.