Study on decision-making model of stock replenishment and shipment based on VMI

This paper summarized the past relevant literatures of VMI (vender managed inventory), according to the characteristics of the mode of operation of VMI, and with a total cost of the optimal point of view, we studied about the problem of suppliers which how to make a decision by coordinate inventory and transportation issues, and established two models of replenishment and shipment policy, one of which based on time and the other one based on number, after that we give out a simulation of sensitivity to parameters, and at last we studied at the changes of the total cost under different levels of service, this paper provided a theoretical basis for enterprises in the implementation of VMI to make effectively decisions.