The Inventory Control Mode Research Of FMCGs Distribution System Based On The Pull Replenishment

Because of China’s Fast moving consumer goods (FMCGs) enterprises are subject to their small business scale, imperfect management system, low level of information modernization, the development of their inventory management is very slow. In the changeable market environment, China’s FMCGs supply link,limited by the level of inventory management, often faces with inventory backlog and inventory shortage at the same time, leading to high costs and low profit. After multinational FMCG companies enter the domestic market, China’s FMCG companies will face increasingly tough competitive environment and traditional extensive inventory management model will hardly make continued success. Therefore, it is very significant for FMCGs enterprises to improve the refinement and flexibility of supply chain distribution system of inventory management.In recent years, scholars, combining practical experience and theoretical progress, have presented some new supply chain inventory management modes, such as Vendor Managed Inventory (VMT), the Joint Managed Inventory (JMI), etc.These new inventory management models have more significant effect for improving the supply chain performance. But These new inventory management mode to solve the internal contradictions of the inventory system and their implementation are based on accurate demand forecasting. In the changeable market environment, it is difficult to solve the existing problems in the inventory management of FMCG companies. The Pull Replenishment Inventory Management mode based on the Theory of Constraints regards inventory control as a means of boosting sales, which enables the company to meet the overall demand rate throughout the supply chain under the premise of significantly lower inventories.Standing at the point of FMCG manufacturer, firstly,this paper discusses the supply chain of fast moving consumer goods distribution system model and its problems,and finds the root cause of the problem,that is,the FMCG manufacturers’inventory management model based on the prediction and the largest short-term interests within the distribution system has led to the accumulation of goods in the supply chain and affectes the liquidity of the entire system. Secondly, this paper attempts to apply pull-replenishment inventory management model to fast moving consumer goods supply chain distribution system to respond to changing needs rapidly, to reduce the system overall inventory levels and inventory turnaround time, ultimately to increase demand satisfaction rate by increasing product availability, and thus enhance the overall profit level of the supply chain system. Finally, this paper will use simulation experiments to verify the advantages of the new inventory management model compared with the traditional ones. And this paper wil verify the validity of the fast moving consumer goods inventory management model based on pull-replenishment.