This paper studies the economic-order-quantity model (EOQ) for deteriorating items in two cases (with and without shortages) to evaluate how vendor managed inventory (VMI) affects supply chain. We consider two-level supply chain (single supplier and a single retailer) with one instantaneous deteriorating item. A numerical example and sensitivity analysis are provided to illustrate the effect of...

Globalization is putting enormous pressure on the business organizations specially manufacturing one to rethink the supply chain in innovative manners. Inventory consumes major portion of total sale revenue. Effective and efficient inventory management plays a vital role for the successful functioning of any organization. Selection of inventory policy is one of the important purchasing activiti...

Vendor Managed Inventory (VMI) is increasingly being adopted as a mean of enhancing the efficiency supply chain (SC) operations. In this paper, we consider scenario where vendor responsible for managing inventory several retailers following VMI partnership and subject to restrictions on their maximum levels. To better reflect reality, first propose mixed integer nonlinear programming model oper...

Campbell Soup’s Continuous Replenishment (CR) program is a novel innovation designed to improve the e¢ciency of inventory management throughout the supply chain. With CR: (1) retailers pay a constant wholesale price but continue to participate in consumer promotions; (2) retailers transmit to the supplier daily inventory information, via Electronic Data Interchange (EDI); and (3) the supplier a...