Quantifying the benefits of continuous replenishment program for partner evaluation

Abstract

This paper develops a data-driven model that quantifies the benefits of supply chain collaboration initiatives such as a continuous replenishment program (CRP). CRP is a wellestablished supply chain collaboration program that is widely used in business. The model computes the cost savings of CRP for both partners involving inventory holding, transportation and ordering/handling cost components. The savings drivers associated with each cost component are identified and used to quantify the impact of CRP. The model is applied in a healthcare supply chain case study where a manufacturer seeks to estimate the cost savings of a business relationship with a distributor. The results indicate that CRP reduces the total cost of the supply chain by 19.1%. In this instance, the distributor gains disproportionately more savings in the shared cost components. The variability and sensitivity of cost savings across the network reveal the supply chain parameters that affect the partner savings.

Horizontal logistics collaboration: an exploratory study in Morocco’s agri-food supply chains

“…Nevertheless, despite the demonstrated benefits of collaborative practices, many firms struggle in their implementation and fail to reach the desired objectives (Nyaga, Whipple, and Lynch 2010). To date, collaboration has proven to be a difficult strategy to implement, mainly because key enabling and constraining factors are usually overlooked (Parsa et al 2017).…”

Mitigating demand risk of durable goods in online retailing

“…Further, Bag et al (2019a, b) incorporated the analysis of consumer review data in the purchase decisions and developed a predictive model to identify the consumer purchase intentions. Further, extensive research has been performed in the literature for coordination/collaboration in multi-echelon supply chains (Chatfield et al , 2004; Costantino et al , 2014, 2015; Parsa et al , 2017; Shaban et al , 2019). In addition, various information sharing based collaboration methods have also been developed in the multi-echelon supply chains to mitigate the bullwhip effect in supply chains (Wang and Disney, 2016; Zarandi and Moghadam, 2017; Costantino et al , 2013).…”

“…Information is typically exchanged so that customer demand can be shared with all concerned entities within the supply chain (Parsa et al 2017;Wang and Disney 2016). Recently, Shaban et al (2019) proposed a collaboration model (IS-OUT) for ordering mechanism of the classical orderup-to policy for multi-echelon supply chains wherein each supply chain echelon can place orders such that demand forecast and product availability is taken into account to adjust the inventory position.…”

“…In traditional multi-echelon supply chain models, information pertaining to single quantity order flows from retailer to wholesaler to distributor to factory and finally to supplier, while the product flows in the opposite direction (Costantino et al , 2016). Information is typically exchanged so that customer demand can be shared with all concerned entities within the supply chain (Parsa et al , 2017; Wang and Disney, 2016). Recently, Shaban et al (2019) proposed a collaboration model (IS-OUT) for ordering mechanism of the classical order-up-to policy for multi-echelon supply chains wherein each supply chain echelon can place orders such that demand forecast and product availability is taken into account to adjust the inventory position.…”

Horizontal logistics collaboration : cases from agri-food supply chains in Morocco

“…Nevertheless, despite the demonstrated benefits of collaborative practices, many firms struggle in their implementation and fail to reach the desired objectives (Nyaga et al, 2010). To date, collaboration has proven to be a difficult strategy to implement, mainly because key enabling and constraining factors are usually overlooked (Parsa et al, 2017).…”