Research On Inventory Management Optimization Of Company A Based On VMI Model

With the rapid development of supply chain management,people have a deeper understanding of its connotation and feel the significance of cost control more and more,which is an important guarantee for providing good service to customers.Under such a background,inventory management has also been promoted to the strategic level,and the management’s focus and scope have been gradually changed,expanding from the internal management to the whole supply chain management.When enterprises in different nodes of the supply chain can develop reasonable strategies of inventory management,relevant information can be effectively transmitted in the supply chain.However,distortion is very likely to occur in the transmission process,resulting in a strong "bullwhip effect".If this effect exists for a long time and the inventory in the supply chain continues to increase,higher capital will be required and the cost will also be increased,which will lead to the weakening of the competitiveness of the supply chain.In the process of studying these problems,many scholars have proposed a brand new inventory management theory,including VMI theory which can suppress the "bullwhip effect".This theory can fully reflect the value of integrated management idea and promote the competitiveness of supply chain.In this study,the author made a thorough understanding of the inventory management of Company A and obtained relevant theoretical knowledge through a large number of literature review,which lays a theoretical foundation for solving the inventory problems of Company A.This paper makes a brief introduction of domestic and foreign practices related to inventory management and supply chain management,and puts forward the core research content,namely vendor managed inventory(VMI).Followed,this paper introduces Company A’s background and the practical problems of Company A’s inventory management on the implementation of the traditional control methods.Analyze from the height of the supply chain,finding out the reasons for the existing problems in Company A’s inventory management,then it is concluded that it is feasible and urgent for Company A to carry out new inventory management.Based on the existing problems in inventory management of Company A,suggestions on how to develop the VMI model are put forward to ensure that the current management model can be improved.In the whole optimization process,the "win-win" effect brought by VMI mode is verified by clear implementation objectives and reasonable models,and reasonable operation rules should be set.All of these measures will guarantee the implementation of the improved scheme.After the end of the study,this paper reviews and summarizes the whole study,and looks forward to the future in-depth study of the practical application of VMI.Based on the particularity of company A’s enterprise background and its actual operation in inventory management,this paper makes an in-depth study and discussion on the problems encountered by Company A in inventory management by using relevant theories of supply chain management,and promotes the establishment and implementation of VMI,which makes Company A’s inventory management change positively.And with the elimination of the barriers between various departments,the theory of inventory management is finally updated and the mode is transformed.In this way,we can solve the inventory dilemma faced by Company A,and at the same time,provide other production-oriented enterprises with more practical and scientific coping strategies in the process of improving the inventory management level.