Comparison of VMI and traditional inventory management models and performance analysis

摘要

This paper first briefly introduced the concept of vendor managed inventory (VMI) and the current research condition and application condition of this method;then the paper made a comparison of the characteristics between the VMI model and traditional inventory management models. After that different models were established for the traditional inventory management method and VMI method to study the effect of VMI implementation to the performance of supply chain under the condition of random demand for seasonal goods. Finally,the following conclusions were reached: the VMI method can help to increase the profit generated from the whole supply chain. However,to use the VMI method effectively,the suppliers' interest should be protected,and cooperation in the supply chain should be strengthened.