Abstract

Adding the third party logistics enterprises between the suppliers and the retailers is a kind of the development of VMI mode, in this mode; inventory pressure is transferred to the third party logistics enterprise. In view of this situation, the VMI inventory control model which treats total inventory control costs as the objective function is built based on from four dimensions: the inventory holding costs, the fixed delivery costs, replenishment costs and customer waiting costs. After solving the model and sensitivity analyzing related parameters, it can be inferred that related parameters in the VMI model of the introduction of the third party logistics have effects on inventory control costs.

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