THE INTEGRATED DETERMINISTIC MODEL FOR A VENDOR MANAGED INVENTORY IN A TWO-STAGE SUPPLY CHAIN

2015 ◽  
Vol 77 (5) ◽  
Author(s):  
Mohd Kamarul Irwan Abdul Rahim ◽  
Santhirasegaran a/l S.R. Nadarajan ◽  
Mohd Rizal Razalli
Keyword(s):  
Supply Chain ◽  
Deterministic Model ◽  
Optimization Approach ◽  
Vendor Managed Inventory ◽  
Two Stage ◽  
Supply Chain System ◽  
Travel Costs ◽  
Chain System ◽  
System Vendor

In a two-stage supply chain system, vendor managed inventory (VMI) policies is an integrating decisions between a supplier and his retailers. The supplier assumes the responsibility of maintaining inventory at its retailers and ensuring that they will not run out of stock at any moment. This paper discusses an optimization approach, considering the model of static demand on the inbound as well as the outbound inventory for a two-stage supply chain implementing VMI. In the proposed solutions for coordinating the single-warehouse multiple-retailers (SWMR) system, retailers are first clustered to minimize the within-cluster travel costs and distances and are then replenished using an optimal direct shipping strategy satisfying some additional restrictions.

scholarly journals Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Yongchang Wei ◽  
Fangyu Chen ◽  
Hongwei Wang
Keyword(s):  
Supply Chain ◽  
Discrete Time ◽  
Bullwhip Effect ◽  
Vendor Managed Inventory ◽  
Function Model ◽  
Simulation Experiments ◽  
Supply Chain System ◽  
Chain System ◽  
Production Dynamics ◽  
Theoretical Results

This paper presents some analytical results on production and order dynamics in the context of a discrete-time VMI supply chain system composed of one retailer and one manufacturer. We firstly derive the lower bound and upper bound on the range of inventory fluctuations for the retailer under unknown demand. We prove that the production fluctuations can be interestingly smoothed and stabilized independent of the delivery frequency of the manufacturer used to satisfy the retailer’s demand, even if the retailer subsystem is unstable. The sufficient and necessary stability condition for the whole supply chain system is obtained. To further explore the production fluctuation problem, the bullwhip effect under unknown demand is explored based on a transfer function model with the purpose of disclosing the influences of parameters on production fluctuations. Finally, simulation experiments are used to validate the theoretical results with respect to inventory and production fluctuations.

scholarly journals STUDI KASUS PENERAPAN VENDOR MANAGED INVENTORY PADA SISTEM RANTAI PASOK

2018 ◽  
Vol 2 (1) ◽  
pp. 28-39
Author(s):  
Ricky Virona Martono
Keyword(s):  
Supply Chain ◽  
Pharmaceutical Company ◽  
Production System ◽  
Key Factors ◽  
Vendor Managed Inventory ◽  
Supply Chain System ◽  
Chain System ◽  
Inventory Replenishment

Vendor Managed Inventory (VMI) is an approach in managing inventory between supplier and consumer in an supply chain system. In VMI concept, supplier keeps its inventory at consumer’s warehouse, meanwhile inventory ownership belong to supplier until it is used by consumer. The advantage of VMI is to reduce inventory replenishment ordering process and to reduce the usage of consumer’s warehouse space. Some key factors to achieve VMI success are: coordination, communication, production system and inventory order reliability.When supplier is a subsidiary of consumer, coordination between the two usually puts them not at an equivalent level, especially when supplier’s infrastructure is not as good as that at consumer. This research is a case study at a pharmaceutical company and its supplier which acts as its subsidiary. Information and data gathered by deep interview to all parties responsible for supply chain, production, and inventory at supplier and consumer sides. The results show advantages and obstacles in applying VMI, thus long-term commitment is needed to reach a better performance.

scholarly journals Optimizing the Two-Stage Supply Chain Inventory Model with Full Information Sharing and Two Backorders Costs Using Hybrid Geometric-Algebraic Method

2013 ◽  
Vol 2013 ◽  
pp. 1-5 ◽  
Author(s):  
Mohamed E. Seliaman
Keyword(s):  
Supply Chain ◽  
Algebraic Method ◽  
Relevant Information ◽  
Two Stage ◽  
Single Product ◽  
Supply Chain System ◽  
Total Cost ◽  
Chain System ◽  
Operational Costs ◽  
Replenishment Policy

We consider the case of a two-stage serial supply chain system. This supply chain system involves a single vendor who supplies a single buyer with a single product. The vendor’s production rate is assumed finite. In addition, the demand at the buyer is assumed deterministic. In order to coordinate their replenishment policies and jointly optimize their operational costs, the two supply chain partners fully share their relevant information. For this purpose, we develop an integrated inventory replenishment model assuming linear and fixed backorders costs. Then, we use a hybrid geometric-algebraic method to drive the optimal replenishment policy and the minimum supply chain total cost in a closed form.

scholarly journals A Model of Waste Price in a Symbiotic Supply Chain Based on Stackelberg Algorithm

2021 ◽  
Vol 13 (4) ◽  
pp. 1740
Author(s):  
Cheng Che ◽  
Xiaoguang Zhang ◽  
Yi Chen ◽  
Liangyan Zhao ◽  
Zhihong Zhang
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Comparative Analysis ◽  
Power Structure ◽  
Income Level ◽  
Power Structures ◽  
Optimal Price ◽  
Supply Chain System ◽  
Chain System ◽  
Revenue Model

By establishing a two-level symbiotic supply chain system consisting of one supplier and one manufacturer, we use Stackelberg method to analyze the optimal price and revenue model of supplier and manufacturer in the symbiotic supply chain under two power structures in which the supplier and manufacturer are dominant respectively, and analyze the influence of the degree of symbiosis and power structure on the model. Through comparative analysis, we find that: There is a relationship between the income level and the degree of symbiosis in the symbiotic supply chain. The change of power structure will affect the relative benefits of suppliers and manufacturers in the symbiotic supply chain. The manufacturer’s expected unit product revenue will affect the supply chain revenue when the manufacturer is dominant. Finally, the sensitivity analysis of relevant parameters is carried out through an example analysis, and the validity of the conclusion is verified. This paper has a guiding significance for the behavior of enterprises in the cogeneration supply chain.

A flexible and adaptable planning and control system for an MTO supply chain system

2006 ◽  
Vol 22 (5-6) ◽  
pp. 557-565 ◽  
Author(s):  
Mustafa Özbayrak ◽  
Theopisti C. Papadopoulou ◽  
Efstratios Samaras
Keyword(s):  
Supply Chain ◽  
Control System ◽  
Supply Chain System ◽  
Chain System ◽  
Planning And Control ◽  
And Control

An operational policy for a three-stage distributive supply chain system with retailers’ backorders

2014 ◽  
Vol 156 ◽  
pp. 332-345 ◽  
Author(s):  
Bhaba R. Sarker ◽  
Ratkrit Rochanaluk ◽  
Huizhi Yi ◽  
Pius J. Egbelu
Keyword(s):  
Supply Chain ◽  
Supply Chain System ◽  
Chain System
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