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...

This paper uncovers the experiences of automotive suppliers in Thailand, which have implemented web-based application to support vendor managed inventory (VMI). First, we identify enabling factors with greatest influence on the outcomes of web-based application implementation. Data was obtained from seventy tier-1 suppliers of the two biggest automobile assemblers in Thailand. Then, exploratory...

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 a VMI service, a central production center (i.e. the vendor) can control the inventory of each retailer according to the optimization of the costs due both to the overfilling/stock-out of the inventories and to the travels required for the deliveries. In this work, an original mathematical programming approach has been formulated and implemented in order to show that under specific but commo...

Vendor-managed inventory (VMI) is a popular policy in supply chain management (SCM) to decrease bullwhip effect. Since the transportation cost plays an important role in VMI and because the demands are often fuzzy, this paper develops a VMI model in a multi-retailer single-vendor SCM under the consignment stock policy. The aim is to find optimal retailers' order quantities so that the total inv...

This paper considers a two-level vendor managed inventory (VMI) system comprising a distribution center (DC) and a retailer. Both the DC’s and the retailer’s replenishment decisions follow the order-up-to-level policy and aim at maximizing the profit of the overall system. We critically examine the potential of the DC’s ability to modify delivery decisions, identify and quantify the cost factor...

One of the problems that government managers deal with are medical inventory management in COVID-19 conditions. Based on this situation, best strategy for managing and reducing costs can be Vendor-Managed Inventory (VMI) policy recent decade. Therefore, a hybrid fuzzy data-driven robust optimization Resilience Sustainable Health Care Supply Chain (RSHCSC) VMI approach is appropriate improving s...

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This study aims to determine the value of vendor-managed inventory (VMI) over independent decision making with information sharing (IS) under non-stationary stochastic demand with service-level constraints. For this purpose, we utilize mixed-integer linear programming formulations to quantify the benefits that can be accrued by a supplier, multiple retailers and the system as a whole by switchi...

Many strategies have been developed to manage supply chain operations effectively. Vendor Managed Inventory (VMI) system is one of the prevalent strategic tools of the supply side logistics based on the electronic data exchange and business process automation among the suppliers and customers to enhance the competitive advantage. VMI is widely used in different industries including automotive s...