The Comparision Of Multiple Inventory Management Modes In Supply Chain

The traditional inventory management mode as the first proposed management mode has many drawbacks,so the inventory management model under supply chain management which includes the jointly managed inventory mode and the vendor managed inventory mode has appeared.This paper makes a comparison of the three kinds of inventory management models under the economic order batch model from the aspects of cost.Firstly,the characteristics of three modes under economic order quantity model are obtained by the definition of three kinds of inventory management.Traditional inventory management mode get the retailers' optimal economic order quantity and supplier's optimal economic production batch to optimize the retailers' and supplier's costs respectively.VMI mode is that supplier determine the quantity of the order and bear the retailer's inventory cost and the shortage cost and to get the suppliers' optimal economic production batch from optimizing the overall cost of the supply chain.JMI mode set up a stock center to take the inventory cost of retailers and the supplier and get the optimal economic order quantity to reduce supply chain costs.Then this article derives supply chain cost formula of three inventory management modes from two assumptions about that the presence of lead time to out of stock and no lead time with not allowed out of stock according to the characteristics of three modes under economic order quantity model.And in order to make the comparison more intuitive,to build sensitivity analysis table and the supply chain cost variation by change the related variable of supply chain cost formula according to a set of data in related articles.By observing the supply chain cost variation to get the intuitive comparison about supply chain cost of different assumptions and modes.At the same time,it also proves the absolute superiority of the inventory management modes under supply chain management.The end of the article is the summary of the whole article and outlook for the future research work.