Vendor managed inventory for single-vendor multi-retailer supply chains

Mateen, Arqum; Chatterjee, Ashis Kumar

doi:10.1016/j.dss.2014.12.002

Cited by 54 publications

(26 citation statements)

References 36 publications

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“…Modeling studies relate to supplier aspects, customer aspects, supply chain integration aspects and product aspects (Waller et al, 1999;Angulo et al, 2004;Yao and Dresner, 2008;Mateen and Chatterjee, 2015). Waller et al, (1999) explore how VMI performs under particular constraints including different levels of demand variability, limited manufacturing capacity and partial channel adoption.…”

Section: Emergence Of the Vmi Approachmentioning

confidence: 99%

“…Researchers have studied the value of the VMI approach compared with other supply chain integration approaches (Sari, 2008;Mateen and Chatterjee, 2015). Sari (2008) developed a simulation study to compare the performance improvement gained from VMI and Collaborative Planning, Forecasting and Replenishment (CPFR).…”

Section: Emergence Of the Vmi Approachmentioning

confidence: 99%

“…Mateen and Chatterjee (2015) use a mathematical model to compare retail managed inventory with four VMI models capturing different operating systems. The results suggest that the benefits of VMI depend on the operation system.…”

Section: Emergence Of the Vmi Approachmentioning

confidence: 99%

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The adoption of vendor managed inventory for hospital pharmaceutical supply

Krichanchai

MacCarthy

2017

IJLM

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The study investigates Vendor Managed Inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI adoption. Multiple case studies are conducted involving five organizations (three hospitals, one distributor, and one manufacturer/ supplier). Four dyadic relationships are identified. Triangulation techniques are used in data collection, including interviews, site visits and document analysis to enhance reliability and validity. Case studies have been analyzed individually and comparatively. Two types of VMI initiatives -public and private sector -are identified in the supplier/hospital context. The public sector supplier focuses on improving service level while the private sector supplier seeks to strengthen relationships with key customers. Hospital characteristics, including the type of hospital, top management perspectives, and the hospital's willingness to share information, are critical in decisions on VMI initiation or termination. Relatively stable demand products are preferred for a VMI approach. Hospitals may perceive risks in VMI adoption for medicines as it involves relinquishing control of critical supplies and may result in 'lock-in' with a particular supplier. The paper provides supply side and demand side perspectives on VMI adoption in an important sector. It highlights the need for greater understanding of the perceived and actual risks in VMI from the perspective of both the hospital and the supplier and for much clearer advice on which pharmaceutical products are appropriate for VMI control in a hospital context. VMI is advocated as being beneficial in many supply contexts. However, it may be challenging to implement. This study identifies a range of factors that affect the adoption of VMI in hospital pharmaceutical supply chains. The cases have been conducted in one country, which may affect the generalization of the findings. Wider empirical evidence from other countries in both developed and less developed regions will be beneficial.

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Section: Emergence Of the Vmi Approachmentioning

confidence: 99%

Section: Emergence Of the Vmi Approachmentioning

confidence: 99%

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The adoption of vendor managed inventory for hospital pharmaceutical supply

Krichanchai

MacCarthy

2017

IJLM

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“…Unlike decentralized distribution mode, supply hub changes the relationship between manufacturers and suppliers from one-to-many to one-to-one, simplifying the operation processes [34]. Since the utilization of supply hub has already achieved good results in enterprise management practices [35][36][37], we validate the effectiveness of the new approach by comparing and analyzing the flexibility performance of decentralized distribution mode as Mode 1 and supply hub operation mode as Mode 2. In order to facilitate the study, we consider the simple supply chain structure of 1 manufacturer and 2 suppliers.…”

Section: Problem Statementmentioning

confidence: 95%

A Flexible Logistics Distribution Hub Model considering Cost Weighted Time

Ran

Zhang

Liu

2017

Discrete Dynamics in Nature and Society

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The delivery time of order has become an important fact for customers to evaluate logistics services. Due to the diverse and large quantities of orders in the background of electronic commerce, how to improve the flexibility of distribution hub and reduce the waiting time of customers becomes one of the most challenging questions for logistics companies. With this in mind, this paper proposes a new method of flexibility assessment in distribution hub by introducing cost weighted time (CWT). The advantages of supply hub operation mode in delivery flexibility are verified by the approach: the mode has pooling effects and uniform distribution characteristics; these traits can reduce overlapping delivery time to improve the flexibility in the case of two suppliers. Numerical examples show that the supply hub operation mode is more flexible than decentralized distribution operation mode in multidelivery cycles.

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“…VMI offers benefits to the stores due to the high availability of the product and provides an opportunity for distributors to improve the efficiency of their product marketing, and is able to maintain the availability of fluctuating demand and demand uncertainty [5]. VMI responds quickly and efficiently in meeting customer needs as well as being a decisive factor for business survival and development of business prediction [6].…”

Section: Introductionmentioning

confidence: 99%

Inventory Control System by Using Vendor Managed Inventory (VMI)

2018

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The inventory control system has a strategic role for the business in managing inventory operations. Management of conventional inventory creates problems in the stock of goods that often runs into vacancies and excess goods at the retail level. This study aims to build inventory control system that can maintain the stability of goods availability at the retail level. The implementation of Vendor Managed Inventory (VMI) method on inventory control system provides transparency of sales data and inventory of goods at retailer level to supplier. Inventory control is performed by calculating safety stock and reorder point of goods based on sales data received by the system. Rule-based reasoning is provided on the system to facilitate the monitoring of inventory status information, thereby helping the process of inventory updates appropriately. Utilization of SMS technology is also considered as a medium of collecting sales data in real-time due to the ease of use. The results of this study indicate that inventory control using VMI ensures the availability of goods ± 70% and can reduce the accumulation of goods ± 30% at the retail level.

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Vendor managed inventory for single-vendor multi-retailer supply chains

Cited by 54 publications

References 36 publications

The adoption of vendor managed inventory for hospital pharmaceutical supply

The adoption of vendor managed inventory for hospital pharmaceutical supply

A Flexible Logistics Distribution Hub Model considering Cost Weighted Time

Inventory Control System by Using Vendor Managed Inventory (VMI)

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