Abstract
With the development of information technology and the change of spending behavior of consumers, the manufacturers need to make some radical reforms to confront the bullwhip effect on the supply chain. In order to reduce the cost of inventory and to enhance the competitiveness of the supply chain, the manufacturers have encouraged suppliers to execute vendor managed inventory for many years. It has brought much more benefit to electronics manufacturing, especially the reduction of the cost of inventory. However, HMLV (high mix low volume) production model arises and LMHV (low mix high volume) production is replaced in recent years. In coducting the VMI approach, the suppliers are faced with the problem of how to cooperate with the upstream suppliers so as to expand the effects of implementing the VMI approach. Taking TFT-LCD industry as an example, the research is to study the differences of supplier selection and selection factors of enterprises between traditional purchasing model and vendor managed inventory model. Moreover, the research will also talk about the weight of the factors by using questionnaire to provide a reference for enterprises after they intergrate vendor managed inventory. Through the two-stage questionnaire and the ranking method, we find that: 1.”Quality” is still the most important factor for the enterprises when it comes to the selection of suppliers both in the traditional purchasing model and in the vendor mananged inventory model. 2. In the traditional purchasing model, the enterprises pay the most attention to the supplier quality ability. The enterprise will choose the best one to cooperate with. However, in the vendor mananged inventory model, the enterprises reached the gaol of upgrading the quality, reducing the cost and improving the efficiency of the supply chain by cooperating with the supplier in information and technology. 3. In the vendor mananged inventory model, the supplier cooperative ability is more important to the enterprise. Enterprises put more emphasis on the cooperativeness of the suppliers when choosing suppliers.