Analysis on Manufacturing Logistics Network Equilibrium under the VMI Inventory Management Mode

Abstract

The network equilibrium theory is used to study the optimization design of manufacturing enterprises in implementation of VMI inventory management model. In particular, we firstly construct a four tier logistics network, composed of raw material suppliers, spare parts suppliers, manufacturers, logistics service providers. And the network system is modeled, and the profit functions of all levels of decision maker are formalized, and then transformed into the equivalent variational inequality form for computation. Finally, a numerical example is given and some valuable research inspiration are obtained.