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Integration of a Two-Stage Supply Chain in Vendor-Managed Inventory

Author: QinHua
Tutor: LiShaoZuo
School: Southwestern University of Finance and Economics
Course: Logistics Management
Keywords: Vendor Managed Inventory Supply Chain Integration Information sharing Game
CLC: F224
Type: Master's thesis
Year: 2010
Downloads: 104
Quote: 0
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Abstract


With the global manufacturing and economic integration, the competition among enterprises has gradually turned to the chain and chain competition, network and network competition. Determine whether an enterprise competitiveness, has been not only to see its strength, but also depends on its ability to integrate resources. Rapid response capability and efficient customer responsiveness has become a decisive factor in the survival and development of enterprises. Through the cooperation between enterprises of the supply chain, improve supply chain flexibility to meet the needs of consumers, and reduce the bullwhip effect of supply chain. As a new method of inventory management, vendor managed inventory (Vendor-Managed Inventory, VMI), breaking the traditional inventory management mode, so that the operation of the supply chain coordination synchronization, integrated supply chain thinking to meet the supply chain management, inventory management requirements. The VMI inventory replenishment policy has always been research focus, has a very important practical significance. Two supply chain integration on a single supplier and a single retailer. This thesis, the results are as follows: First, in the case of demand determined, temporary does not allow suppliers and retailers out of stock, we research suppliers under VMI - retailer channel supply chain integration issues, analysis of the implementation of VMI mode for the system benefits. The results show that the backorder, the implementation of VMI mode makes the system cost reduction. At the same time, the optimal replenishment quantity of suppliers to retailers increased, while the optimal replenishment frequency is reduced. Secondly, in the case of demand identified, allows retailers out of stock, we study the VMI suppliers - the retailer channels of supply chain integration issues, analysis of optimal replenishment policy before and after the implementation of VMI. Draw the following conclusions: allow retailers out of stock, the implementation of the VMI model also makes it possible to reduce system costs, increase in optimal replenishment quantity and optimal replenishment frequency is reduced, In addition, the implementation of VMI makes the retailer's optimal stock increased. Through numerical analysis, we can also be seen, the VMI system before and after the costs with increasing Out cost increases retailer BEST Out decreases with increasing Out costs, ie when out of stock costly when retailers tend not to occur out of stock, which is consistent with the actual situation. Finally, under the influence of the demand by the retail price and retailer promotional costs, allows retailers out of stock, we study the optimization problem of the the Stackelberg game contract between suppliers and retailers under VMI, analysis of supply and retailers, pricing strategies, promotional costs invested amount and replenishment strategies. The results show that, by established suppliers Stackelberg game leader, suppliers optimal decision available to maximize its profits. However, by adjusting the suppliers to determine the optimal wholesale price, the system profit there is room for improvement. Therefore, the contract is a contract, so suppliers are willing to change the wholesale price to improve system profits. In this thesis, the main contribution to: (1) In this paper, under VMI supplier - retailer supply chain integration channels. From suppliers replenishment methodology and model assumptions on the basis of previous studies, to modify the model and expand. (2) In this paper, the analysis needs to determine the optimal replenishment policy allows retailers out of stock, the past use of different methods of mathematical derivation, we apply a non-mathematical derivation analytical method to solve have only elementary mathematical knowledge can master the ways. (3) In the past, most studies assume that the demand function is a linear function of the retail price, and this paper, we consider the demand function is a function of the amount of the retail price and retailer's promotional cost investment, meet Cobb Douglas utility function (Cobb-Douglas), analysis The retailer's optimal retail price and optimal promotional costs.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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