Application Research Of C Company Inventory Management Based On CPFR

Facing fiercer of competition in the market at present day, how to reduce thecost and improve the efficiency of supply chain become more important. Inventorymanagement has already been one of the central areas of supply chain management.Enterprises using traditional inventory management only pay attention on their owninventories. And base on the information sharing supply chain system, its objective isto forecast in a coordinately manner throughout the entire trading partners, and thus tocontrol stock to a reasonable level, achieving profits for all participants.This paper briefly introduces basic theories of Vendor Managed Inventory andJointly Managed Inventory. Elaborate the concept, original reasons, guidingprinciples and methods of the actualization approaches of CPFR (CollaborativePlanning Forecasting and Replenishment). The results of detailed comparison amongthe three inventory management indicate that the benefits of CPFR including lowerinventories and higher service levels. Refer to the fact of C Company and analyses ofdefects in inventory management it proves the feasibility of carrying out CPFR andgives suggestions of the implementation. Following it focuses on the possiblemodules of inventory setup and replenishment, creating material monitor system, theprinciples of choosing suppliers and managing guidelines, mechanism of interestsdistribution and methods for handing exemptions during the cooperation. Under thehelp of all above to reach a more efficient way in supply chain demands forecasting,inventories down and cost reduction. At last in order to successfully execute theCPFR, the thesis introduces three safeguard measures.