A Study Of M Company's Inventory Control Strategy Based On VMI

As supply chain management is developing all the time, people start to search a way of minimum supply chain cost together with maximum performance of customer service. According to this situation, tremendous changes have taken place in the definition of inventory management from merely focusing on its own inventory management in traditional point of view, turn to the control of inventory of the whole supply chain. Inventory is no longer idle material or temporary storage under supply chain environment, however, it is a result of lack of communication and connection among enterprises or departments. Therefore, the real essence of inventory control is a working procedure management regarding company's business process instead of controlling of the logistic management of materialThe thesis mainly considers and analyzes stock and inventory management problems and methods based on M company's actual situation, combining with the characteristics of this industry as well as different types of products and suppliers. On the other hand, the thesis also deeply discuss and study supply chain inventory problems by applying related theory of supply chain management, plan and implement Vendor Managed Inventory, for the purpose of making the company have a successful transition from traditional mode to the new mode of VMI in supply chain inventory management. It helps the company solve the problem which they are facing, and also it provides reference of solution and strategy for inventory management of similar manufacturing enterprises.The main process of this thesis is to propose the problems, analyze the reasons for the problems, and find out the solution for the problems. The main content is as following: first of all, summarizing the current status of domestic and international study in supply chain inventory management by means of introducing the background and importance of the study, emphasizing that the key point of this thesis is Vendor managed inventory (VMI). Secondly, elaborating the theory of supply chain inventory and different modes of supply chain inventory management (VMI, JMI and CPFR), providing the theoretical basis and support for problem analysis. Then, analyzing in depth each link in the supply chain which M company stays in, explaining the necessity of implementing the strategy of supply chain inventory management. Thirdly, introducing how M company makes improvement on the inventory management by planning and implementation of VMI strategy, and effectively solving problem in supply chain inventory management. Finally, making a conclusion of the study in this thesis, and expecting a further and deeper study on VMI in the future.