Deepening of functionality of the logistic concept of VMI

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MAGAZINE №6 (71) December 2015

AUTHORS  NEGOMEDZYANOV Y.A.NEGOMEDZYANOV G.Y.  

CATEGORY   Inventory management Modern concepts and technologies in logistics and supply chain management  Sourcing  

ABSTRACT

According to the experts, efficiency of VMI realization in the conditions of Russian reality is very far from an ideal. Absence of personnel, necessity of introducing specialized software products, emergence of specific legal, tax, information and accounting risks are among reasons for such situation.

In our view, the main reason is in lack of sufficient scientific justification of the VMI concept. So, the deepening of its functionality is necessary.

In this article the option of the VMI model functionality deepening for level «the producer operates stocks of the distributor» is introduced. It concerns the implementation of the dynamic schedule providing a supply of vehicles to distributors on the coordinated zone.

The concept of management directed on formation of flexible consumers quickly reacting to individual requirements and the distributive processes is developed for the «distributor operates stocks of retail network» level, in order to decrease in logistic expenses within dynamic demand.

Statement of notably interesting problem in the conditions of VMI usage is carried out.  It concerns choosing the optimum solution of material flow distribution in a dynamic logistic system «the distributor - retail network».

Several important methodological terms of calculation procedure of minimal required inventory level in VMI are considered.

Materials management in the course of finished goods distribution to consumers with the help of the offered model of VMI technology, the stock reduction in supply chains to reasonable level will help to increase the efficiency of using VMI concept at whole and expand the possibilities of its widespread VMI utilization in Russia.

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