Improvement of inventory control system based on VMI technology

<h2 align="center"><strong>Annotation of graduate qualification work</strong></h2><p>Graduation thesis topic: &quot;Improving the inventory management system based on the VMI technology&quot;</p><p>Repin Andrei Dmitrievich, Group 423 l</p><p>Scientific adviser: Anastasia V. Ivanova</p><p style="text-align: justify;">In this paper, we consider a VMI system, as one of the ways to improve the inventory management system.</p><p style="text-align: justify;">The aim of this work is to improve the inventory management system based on the VMI technology. The following tasks should be solved: to determine the features of the supply chain of tobacco industry, identify common problems in the area of ​​inventory management, review existing methods of demand forecasting, identify characteristics of VMI systems, implement VMI technology to improve inventory management system, assess the economic effect of the proposed measures.</p><p style="text-align: justify;">The methodology of this work includes the following steps. The first step is to analyze the industry and the company using various method: SWOT-analysis, Porter&#39;s 5 Forces analysis, analysis of the economic condition of the company. Next step is to identify the main challenges in the field of logistics. The next step is to analyze major Russian and foreign publications, which are devoted to forecasting demand, VMI - system, ABC-XYZ analysis. The following step is to develop the algorithm, which is necessary to improve the inventory management system. This algorithm includes following steps: realization of ABC-XYZ analysis, identification of stock items, which have stable demand and the lowest inventory turnover time. These commodity groups include in VMI. The stock items are divided into two groups: whom include in VMI and whom are not included in this system. Then we change inventory management model and improve methods of forecasting. Finally yet importantly, economic effect of these changes should be measured.</p><p style="text-align: justify;">The main results of this work are the following: changes in the inventory management system using the technology of VMI, improving forecasting techniques, reducing inventory levels, assess the economic effect. The economic effect was shown by the index of profitability to net worth in the strategy map, which increased by 0.13% with minimal implementation costs.</p>