The Study Of VMI Replenishment Model With Fuzzy Random Demand

Vendor managed inventory can effectively alleviate the "bullwhip effect" in supply chain,the supplier can accurately grasp the market fluctuation by mastering the downstream demand and stock information,make reasonable production schedule and replenishment decision,help supplier and retailer maintain a perfect inventory level.However,because of the complexity of actual production and market fluctuation,the supplier and retailer couldn't get accurate demand in some cases.It becomes a key issue that how to properly determine the demand under VMI environment.As a combination of fuzzy variable and random variable,the fuzzy random demand not only considers the managers' experience but also concerns the distribution of historical data.It is an effective way to quantify the uncertainty of demand and dynamically describe the fluctuation for complex market environment.For inventory replenishment problem under VMI environment,the paper analyzes the uncertainty in supply chain and inventory management,studies the typical supply chain structure and replenishment model,confirms the key influence factors of inventory level and replenishment decision,and determines the decision content and objectives.This paper develops a dual-objective vendor-managed inventory model with a single supplier and multiple retailers in a supply chain in which the retailer's demand is assumed as a fuzzy random variable and the supplier incurs a constant deterioration rate.The model is optimized to simultaneously minimize the total cost and maximize the service level under capital budget and storage constraints,in which ordering cost,holding cost,deterioration cost and transportation cost are considered in the total cost of the vendor.To solve the proposed model in an imprecise environment,expectation model with expected value and chance constrained model with pessimistic value are used to change the fuzzy random model into a determined model,and fuzzy random simulations are presented to obtain the optimal replenishment quantities.A numerical study with a single vendor and three retailers in the supply chain is provided to demonstrate the efficiency of the models and algorithms,which gives the optimal results,parameter analysis and recommendations for the expectation model and chance constrained model with pessimistic value.