Negotiation Model for Optimal Replenishment Planning Considering Defects under the VMI and JIT Environment

Kim, Sung Chul; Shin, Kwang Sup

doi:10.1016/j.ajsl.2019.09.003

Cited by 13 publications

(6 citation statements)

References 18 publications

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“…As affirmed by Yang et al [80], a JIT supply chain brings uncountable advantages to companies and should be based on the acquisition of customer knowledge to be ideally shared among SC stakeholders. JIT-based strategies can indeed guarantee cost flexibility and reveal to be particularly helpful to capture economies of scale [35]. However, this may lead to higher SC complexity as well as vulnerability to failures, which would be translated into the exposure of companies to the occurrence of several SCRs [73,78] responsible of serious financial losses [56,77].…”

Section: Current Challenges For Supply Chain Risk Managementmentioning

confidence: 99%

Multi-criteria risk classification to enhance complex supply networks performance

2021

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Section: Current Challenges For Supply Chain Risk Managementmentioning

confidence: 99%

Multi-criteria risk classification to enhance complex supply networks performance

2021

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“…Several researchers exploited the many benefits of VMI implementation including improved service levels and reduced stock-outs, increased inventory turnovers and reduced lead times, improved control of the bullwhip effect and chain-wide cost savings, among others (e.g. Disney and Towill [5]; Angulo et al [6]; Hariga et al [7], Kim and Shin [8]). For readers interested in a more in-depth discussion of the benefits and limitations of a VMI-based collaborative scheme, Anand et al [9] provide a thorough analysis.…”

Section: Introductionmentioning

confidence: 99%

A Single-Vendor Multi-Retailer VMI Partnership Under Individual Carbon-Cap Constraints

2023

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Vendor Managed Inventory (VMI) is increasingly being adopted as a mean of enhancing the efficiency of supply chain (SC) operations. In this paper, we consider a scenario where a vendor is responsible for managing the inventory of several retailers following a VMI partnership and subject to restrictions on their maximum inventory levels. To better reflect reality, we first propose a mixed integer nonlinear programming model where the vendor and the retailers operate under different environmental legislations with distinct carbon caps. Additionally, to further reduce chain-wide costs, the developed model is extended to allow for carbon exchange among SC members. We derive structural properties for both models to devise efficient exact solution algorithms. The resulting cost savings can be shared with SC members to ensure they are not worse off under the newly proposed ''carbon cap and exchange'' policy. The benefits of this enhanced collaborative scheme are illustrated through a small example involving a single vendor and five retailers. Furthermore, a one-way sensitivity analysis is conducted to evaluate the impact of the number of retailers and the restrictiveness of the SC members' carbon caps on the performance of the two proposed models. The obtained results indicate that carbon exchange among SC members is more advantageous for a larger number of retailers. Moreover, the implementation of the new carbon policy yields higher cost reductions when there are strict constraints on the SC members' carbon emissions.

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“…Several studies have reported substantial benefits of VMI implementation including improved service levels, reduced lead times and increased inventory turnovers, reduced stock-outs, improved control of the bullwhip effect due to better visibility and lower demand uncertainty, and chain-wide cost savings among others (e.g. Disney and Towill [10]; Angulo et al [11]; Hariga et al [4], Kim and Shin [12]). It is noted that the benefits of the VMI agreement are better assessed once the vendor considers not only his own costs but also those of the retailers [13].…”

Section: Introductionmentioning

confidence: 99%

Vendor Managed Inventory Coordination Under Contractual Storage Agreement and Carbon Regulation Policies

2022

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In essence, the extent of collaboration among supply chain (SC) members, via practical mechanisms such as Vendor Managed Inventory (VMI), shall look beyond economic gains to strive for curbing the environmental impact of their logistics activities. This aligns well with the recently imposed sustainability related targets set by many legislative authorities. In this paper, we address a realistic SC problem wherein a single vendor serves multiple retailers under a VMI partnership. In order to deter the vendor from shipping larger batches downstream, the contractual agreement stipulates an upper limit on the inventory level held at each retailer's location where the vendor is penalized upon exceeding this level. In this context, economic and environmental as well as combined models are developed, with the latter employing carbon cap and carbon tax policies. Upon exploiting the structure of the developed models, computationally-efficient exact solution algorithms are devised. The conducted numerical analysis suggest that minor operational adjustments could lead to substantial carbon footprint reduction at the expense of a slight increase in the operational cost. Based on a novel use of the Lagrange multiplier, this work provides decision makers with a useful tool that aids with the selection of the most-suited carbon policy to embrace.INDEX TERMS Sustainable supply chain, vendor managed inventory, carbon policies, exact solution procedures, single vendor, multiple retailers

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Negotiation Model for Optimal Replenishment Planning Considering Defects under the VMI and JIT Environment

Cited by 13 publications

References 18 publications

Multi-criteria risk classification to enhance complex supply networks performance

Multi-criteria risk classification to enhance complex supply networks performance

A Single-Vendor Multi-Retailer VMI Partnership Under Individual Carbon-Cap Constraints

Vendor Managed Inventory Coordination Under Contractual Storage Agreement and Carbon Regulation Policies

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