The Inventory Management Research Of FMCG Based On VMI

With the advancement of economy and the constantly change of customers requirements, the life of products has been shortened generally. The ratio of the Fast Moving Consumer Goods is getting higher and higher in the market. Because of the Fast Moving Consumer Goods commonly have the obvious characters of short sell-cycle, price sensitive and strong season, etc. Those make the consumption of such products have great volatility in the market demand, so enhancing the inventory management of FMCG has great significance to regulate the supply and demand relations. However, through analysis of the related literatures which can be found, the current inventory management of Fast Moving Consumer Goods is far behind the Functional products both in terms of depth and breadth. In addition, the effect of FMCG inventory model is not ideal in practice. Therefore, this article study the inventory control under supply chain environment, make the FMCG as the research object.Through reading a large number of relevant literatures and learning the knowledge of the theory of inventory management, enterprises have their own inventory strategy under the traditional inventory model. Due to the different strategies and volatility demand, the "bullwhip effect" is can’t inevitable, namely the demand amplification phenomenon, increased the cost of supply chain. VMI as the new inventory management win more and more attention from the enterprises. Under such situation, this article research and discuss the inventory control model of Fast Moving Consumer Goods, based on the theory of VMI. Firstly, the article based on the demand forecasting theory, combine with the characteristics of Fast Moving Consumer Goods and its principle of prediction and adopt the additive type demand forecast function which considers the sale price and sale effort. It’s good to make more accurate demand forecasting under the different marketing strategies. Secondly, make achieving the maximizing profit as theme and further set up the shipping policy model based on quantity and time on the basis of analyzing the classic Vendor Managed Inventory model. Then compare with the classic model and make the conclusion. Finally, in the case analysis section, the article selects the representative FMCG as the object. Through practical survey and collected the data, then using the numerical analysis method to verify the inventory control model of FMCG. In addition, make sensitivity analysis of the variables of model to study the influence on optimal decision variables and the final profit when the variables of model change, then summarize it’s regularity. Provide effective decision-making basis for the managers to make inventory control strategy of FMCG. to improve the practicability of inventory model.