MANAGING VENDOR INVENTORY IN A DUAL LEVEL DISTRIBUTION SYSTEM

Kum Khiong Yang, Robert A. Ruben, Scott Webster

Research output: Contribution to journalArticle

30 Scopus citations

Abstract

Collaborative arrangements among members of the supply chain have received a great deal of interest in recent years as a means of reducing costs. One such arrangement is vendor managed inventory (VMI). VMI allows the vendor to make decisions concerning the quantity and timing of deliveries to the retailer. Such an arrangement offers the potential of a more efficient supply chain by removing the negative effects of retail ordering policies. A thorough review of the literature was conducted to identify factors likely to impact the performance of a VMI partnership. Computer simulation was used to study the effects of these factors from both the vendor's and retailer's perspectives. The results lend insight into the performance of VMI and guidance for managers as to the environments in which VMI is most effective.

Original languageEnglish (US)
Pages (from-to)91-108
Number of pages18
JournalJournal of Business Logistics
Volume24
Issue number2
DOIs
StatePublished - Sep 1 2003
Externally publishedYes

Keywords

  • Simulation
  • Vendor Managed Inventory

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Management Science and Operations Research

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