Author(s)

Huiying Zhang

Corresponding Author

Huiying Zhang

Abstract

Inventory management is an important link in the whole supply chain. Raw materials, semi-finished products and finished products in the supply chain may form inventory. Generally speaking, the inventory cost will reach about 20% - 40% of the value of these goods. Therefore, it is very important to control the inventory quantity of goods in the supply chain to reduce the inventory cost and capital occupation. With the development of supply chain management, people begin to seek the minimization of total cost of supply chain and the maximization of customer service level. In this context, the connotation of inventory management has also changed dramatically, which requires enterprises to shift from the traditional focus on their own inventory management to the inventory control of the whole supply chain. There are many inventory management schemes in the supply chain environment. In recent years, the more advanced one is vendor managed inventor (VMI). However, due to the limited level of cooperation between suppliers and retailers in VMI, it has its own limitations. The joint inventory management model can achieve this win-win partnership, which provides a breakthrough in traditional management methods for supply chain inventory management.

Keywords

Supply chain; stock; replenish; make a price; research