This paper examines the relationship between distributor backorder performance and its inventory levels under Vendor Managed Inventory (VMI) in a supply chain that consists of distributors and manufacturers. We construct a principal-agent model to show that distributors' inventory managed by manufacturers can be used to induce distributor efforts, which are unobservable to the manufacturers, in...

Vendor managed inventory (VMI) is a concept in which stock is monitored, planned and managed by suppliers based on expected demand and previously established threshold levels. Although manufacturing and retail companies have relied on these practices for some time, top pharmaceuticals companies only began experimenting with this concept for R&D supplies management in the early 1990s. At that ti...

in this paper a fuzzy analytical network process model for supporting the vendor selection process in strategic situations is suggested. first, the vendor evaluation problem is putting together by use of the multi-criteria decision-making (mcdm) approach and a five-step hybrid process, which incorporates the technique of fuzzy analytical network process. then the modified topsis (technique for ...

    inventory model,   backorder   buyer ,   vendor,   lot for lot policy In this paper, an inventory model for two-stage supply chain is investigated. A supply chain with single vendor and single buyer is considered. We assume that shortage as a backorder is allowed for the buyer and the vendor makes the production set up every time the buyer places an order and supplies on a lot for lot basis...

Vendor-managed inventory (VMI) is a widely used collaborative inventory management policy in which manufacturers manages the inventory of retailers and takes responsibility for making decisions related to the timing and extent of inventory replenishment. VMI partnerships help organizations to reduce demand variability, inventory holding and distribution costs. This study provides empirical evid...

This paper examines a problem related to replenishing inventories at retailers in distribution networks operated under the paradigm of Vendor Managed Inventory (VMI). In the real world, complexity in analysing such systems arises out of numerous factors, including several random variables and a multitude of costs in the system. Much of the literature makes simplifying assumptions about these fa...

This paper recommends a scaling factors fine-tuning fuzzy logic control approach to optimize the dynamic performance of one typical vendor managed inventory supply chain with automatic pipeline, inventory and order based production control system(VMI-APIOBPCS), based on complex fuzzy control theory. The first thing is to embed a dual-input single-output fuzzy logic controller into the system ba...

In a supplier-customer relationship, Vendor Managed Inventory (VMI) is currently used to monitor the customer’s inventory replenishment. However the integration of VMI implies consequences on the collaboration process that links the different planning processes of each partner. This paper proposes a unified view of the VMI: beyond the short term pull system inventory replenishment, partners hav...