This paper develops an analytical model that explores how important supply chain parameters affect the cost savings to be realized from collaborative initiatives such as vendor-managed inventory (VMI). Results from the model show that benefits, in the form of inventory cost reductions, may be generated from integration depending upon the ratio of the order costs of the supplier to the buyer and the ratio of the carrying charges of the supplier to the buyer. Results also show that these benefits are disproportionally distributed between buyers and suppliers.

Supply chain integration in vendor-managed inventory

Many consumers today buy products and services from e-stores. Because e-store managers are responsible for allocating different resources, it is essential that they understand consumers' shopping behaviour to provide the best possible value for visitors to their websites. Therefore, the purpose of this article is to focus on assessing and improving strategies to reduce the gaps in customer satisfaction caused by interdependence and feedback problems among dimensions and criteria to achieve the aspiration level. We propose a new hybrid Multiple Attribute Decision Making (MADM) model, combining the Decision Making Trial and Evaluation Laboratory (DEMATEL), DEMATEL-based Analytic Network Process (DANP), and VIsekriterijumsko KOmpromisno Rangiranje (VIKOR) methods to solve these problems. Then, three real cases are used to illustrate how the proposed new hybrid Multiple Criteria Decision-Making (MCDM) model improves e-store business. These results can provide e-store managers with a knowledge-based understanding of how to create marketing strategies that reduce the performance gaps of dimensions and criteria to satisfy consumers' needs and encourage customers to purchase more.

https://ir.nctu.edu.tw:443/bitstream/11536/21110/1/000313761800004.pdf

A new hybrid MCDM model combining DANP with VIKOR to improve e-store business

Impact of consignment inventory and vendor-managed inventory for a two-party supply chain

In this research, an economic order quantity (EOQ) model is first developed for a two-level supply chain system consisting of several products, one supplier and one-retailer, in which shortages are backordered, the supplier's warehouse has limited capacity and there is an upper bound on the number of orders. In this system, the supplier utilizes the retailer's information in decision making on the replenishments and supplies orders to the retailer according to the well known (R,Q) policy. Since the model of the problem is of a non-linear integer-programming type, a genetic algorithm is then proposed to find the order quantities and the maximum backorder levels such that the total inventory cost of the supply chain is minimized. At the end, a numerical example is given to demonstrate the applicability of the proposed methodology and to evaluate and compare its performances to the ones of a penalty policy approach that is taken to evaluate the fitness function of the genetic algorithm.

A genetic algorithm for vendor managed inventory control system of multi-product multi-constraint economic order quantity model

In the modern supplier-customer relationship, Vendor Managed Inventory (VMI) is used to monitor the customer's inventory replenishment. Despite the large amount of literature on the subject, it is difficult to clearly define VMI and the main associated processes. Beyond the short-term pull system inventory replenishment often studied in academic works, partners have to share their vision of the demand, their requirements and their constraints in order to fix shared objectives for the medium/long-term. In other words, the integration of VMI implies consequences for the collaborative process that links each partner's different planning processes. In this article we propose a literature review of VMI. Based on the conceptual elements extracted from this analysis, we suggest a VMI macro-process that summarises both operational and collaborative elements of VMI.

/pdf/a-review-of-vendor-managed-inventory-vmi-from-concept-to-3gpsbkv4f9.pdf

A review of Vendor Managed Inventory (VMI): from concept to processes

This paper develops an analytical model that explores how important supply chain parameters affect the cost savings to be realized from collaborative initiatives such as vendor-managed inventory (VMI). Results from the model show that the optimal replenishment frequency with VMI is greater than that without VMI, but the optimal shortage quantity and the optimal order quantity for buyer with VMI is smaller than those for buyer without VMI. Results also show that under a certain condition, the total inventory cost with VMI is lower than that without VMI and these benefits are disproportionally distributed between buyers and suppliers.

Supply chain model in vendor managed inventory

As an important phase in the plan of Logistics Park, traffic volume forecast and traffic assignment are always the research focus.In this paper, the improved traffic volume non-repeated coefficient method was introduced to forecast the Traffic Volume of Logistics Park, based on the results, system optimization assignment model was used for traffic assignment of Logistics Park with the aid of TRANSCAD. The experimental result may be provided for the road network planning of Logistics Park, making the traffic organization of Logistics Park more effective and optimal. Then, it will bring tremendous economic benefits and social benefits.

Research on traffic volume forecast and assignment of Logistics Park

In this paper we study the impact of introducing a mobile channel into a supply chain. Thus, the supply chain owns an electronic channel, a mobile channel and a traditional channel. We model the context as a Stackelberg game. Through numerical experiments, we find that as mobile channel becomes more distinct from existing channels and becomes cheaper, consumers and manufacturer will be better off. We also find the manufacturer's inclination to mobile channel will not eliminate the traditional channel. However, the manufacturer's mobile channel has to keep a balance between attracting consumers for retailers and for itself.

Jinsheng Shen

Papers

Supply chain model in vendor managed inventory

Research on traffic volume forecast and assignment of Logistics Park

Introducing Mobile Channel into Electronic Supply Chain