Vendor Managed Inventory and Its Effect in the Supply Chain

Jung, Sungwon; Chang, Tai‐Woo; Sim, Eoksu; Park, Jin-Woo

doi:10.1007/978-3-540-30585-9_61

Cited by 8 publications

(9 citation statements)

References 6 publications

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“…Study observed that VMI reduce the greatest source of errors and inefficiency in the process, that is, uncertainties linked to sales forecasts. In another study, Jung et al (2005) demonstrated effectiveness of VMI in a capacitated supply chain. It was pointed that when the manufacturer has the higher capacity, he can make more effective integrated production plan which leads to the significant cost reduction.…”

Section: Review Of Previous Studiesmentioning

confidence: 96%

Study of vendor‐managed inventory practices in Indian industries

Borade¹,

Bansod²

2010

Journal of Manufacturing Technology Management

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PurposeIn the global economy, vendor‐managed inventory (VMI) is gradually becoming an important element of supply chain management strategy of organizations. Recently, Indian industries, both large and small, have started adopting VMI for their supply chains. The purpose of this paper is to investigate apparent differences among large and small industries in terms of objectives, drivers, obstacles and impacts of VMI in Indian context.Design/methodology/approachA survey was conducted to examine organizational objectives, strategic drivers, obstacles and affected operations pursuant to VMI adoption. By reviewing the literature, four hypotheses were formed and tested from the responses.FindingsIt is observed that both large and small industries in India have started adopting VMI for improving the business performance. Results clearly indicate that adoption factors are different in large and small industries.Originality/valueThe paper explores current practices with respect to VMI in Indian industries. The analysis would be useful for the developing VMI adoption strategies in Indian context.

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Section: Review Of Previous Studiesmentioning

confidence: 96%

Study of vendor‐managed inventory practices in Indian industries

Borade¹,

Bansod²

2010

Journal of Manufacturing Technology Management

View full text Add to dashboard Cite

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“…Haavick (2000), Jung et al (2005), and Dong and Leung (2009) explored how should VMI be implemented and its impact over the supply-chain performance. Several steps, relevant before a VMI implementation, and main factors to be considered were shown.…”

Section: Inventory and Manufacturingmentioning

confidence: 99%

“…Analysing the performance of a VMI strategy in different supply-chain environments, Jung et al (2005) investigated a situation where the manufacturer makes a consolidated decision about the inventory held in house and at the distributor. A simulation model has been put in place with the use of C++ software (ILOG CPLEX), and the results showed that the VMI strategy reduces costs by 5.8% compared with the traditional policy.…”

Section: Inventory and Manufacturingmentioning

confidence: 99%

Vendor-managed inventory: a review based on dimensions

Govindan

2013

International Journal of Production Research

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Vendor-managed inventory (VMI) represents the methodology through which the upstream stage of a supply chain (vendor) takes responsibility for managing the inventories at the downstream stage (customer) based on previously agreed limits. VMI is another method by which supply chains can be managed, and, owing to centralised decisionmaking and constant information sharing, the benefits are much higher than in traditional supply chain case. However, there exists a lack of research that identifies the dimensions of VMI, benefits of VMI, methods, and levels used in the VMI environment. The focus of this paper is to explore the existing literature on VMI, to categorise it according to the criteria evaluated, and to present a systematic review. In this study, we have classified the review into three categories such as dimension-based, methodology-based, and level-based. From the thorough literature review, we have identified six dimensions of VMI: namely, inventory, transportation, manufacturing, general benefits, coordination/collaboration, and information sharing. In addition, there are, three methodological classifications: modelling, simulation, and case studies. Finally, we will consider the level-based classification. Based on the review, several recommendations that improve the performance of VMI are presented.

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“…The rapid rate of development in information technology has made it possible to share information more effectively and for supply chain actors to cooperate in improving supply chain performance. Vendor managed inventory (VMI) is one of the established supply chain strategies aimed at enhancing competitive advantage through more effective management of supply chain operations (Jung et al, 2005).…”

Section: Introductionmentioning

confidence: 99%

Decision support system for vendor managed inventory supply chain: a case study

Borade¹,

Sweeney

2014

International Journal of Production Research

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Vendor-managed inventory (VMI) is a widely used collaborative inventory management policy in which manufacturers manages the inventory of retailers and takes responsibility for making decisions related to the timing and extent of inventory replenishment. VMI partnerships help organizations to reduce demand variability, inventory holding and distribution costs. This study provides empirical evidence that significant economic benefits can be achieved with the use of a genetic algorithm (GA) based decision support system (DSS) in a VMI supply chain. A two-stage serial supply chain in which retailers and their supplier are operating VMI in an uncertain demand environment is studied. Performance was measured in terms of cost, profit, stock-outs and service levels. The results generated from GA-based model were compared to traditional alternatives. The study found that the GA-based approach outperformed traditional methods and its use can be economically justified in small and medium sized enterprises (SMEs)..

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Vendor Managed Inventory and Its Effect in the Supply Chain

Cited by 8 publications

References 6 publications

Study of vendor‐managed inventory practices in Indian industries

Study of vendor‐managed inventory practices in Indian industries

Vendor-managed inventory: a review based on dimensions

Decision support system for vendor managed inventory supply chain: a case study

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