Research On Inventory Management And Cost Of TL Company Based On Vendor Managed Inventory

China’s manufacturing industry has experienced a rapid growth in recent years. At the same time, firms have been exploring suitable management systems. Due to the diversity of materials in productive plants, large numbers of firms have troubles in inventory management. Same difficulties also exist in suppliers, downstream enterprises and the whole market of supply chains. For a long time, manufacturing enterprises have always been attaching more importance to the end, but less to the manufacturing processes of raw materials, semi-finished products and finished goods. Insufficient attention was paid to the overall management of upstream and downstream manufactories. All of these lead to inventory management issues of supply chains. At present, many domestic and foreign well-known retail enterprises are applying vendor managed inventory pattern, resulting successful feedbacks. Manufacturing companies have many similar attributes to others, so the VMI model has become the first choice and been applied in the daily management life.Combining inventory management theories and the virtual conditions of the TL carbon making company, this thesis analyses the current inventory problems and points out the reasons, such as high costs and the contradictions between supply and demand. It makes a further analysis of the necessities of implementing the VMI method from theoretical and factual aspects. It also makes a detail plan for TL Company to apply VMI method. It also establishes cooperation mechanism connecting one manufacturer, multiple suppliers and the third party logistics together and makes forecasts for changes of the inventory costs, which demonstrates the conclusion that the VMI management model could reduce inventory costs.Nowadays, the competition is not on the market level any longer, but the whole supply chains. China as a manufacturing plant all over the world, it is of profound significance to study the problems in chains of manufacturing suppliers. The purpose of this thesis is to reduce the high inventory costs of enterprises, which could enhance the interests, boost development of the firm and provide reference for other enterprises to improve the inventory management.