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Development of the Decision Support System for Vendor-managed Inventory in the Retail Supply Chain  

Park, Yang-Byung (Department of Industrial Engineering, College of Advanced Engineering, Kyung Hee University)
Shim, Kyu-Tak (Department of Industrial Engineering, College of Advanced Engineering, Kyung Hee University)
Publication Information
IE interfaces / v.21, no.3, 2008 , pp. 343-353 More about this Journal
Abstract
Vendor-managed inventory(VMI) is a supply chain strategy to improve the inventory turnover and customer service in supply chain management. Unfortunately, many VMI programs fail because they simply transfer the transactional aspects of placing replenishment orders from customer to vendor. In fact, such VMI programs often degrade supply chain performance because vendors lack capability to plan the VMI operations effectively in an integrated way under the dynamic, complex, and stochastic VMI supply chain environment. This paper presents a decision support system, termed DSSV, for VMI in the retail supply chain. DSSV supports the market forecasting, vendor's production planning, retailer's inventory replenishment planning, vehicle routing, determination of the system operating parameter values, retailer's purchase price decision, and what-if analysis. The potential benefits of DSSV include the provision of guidance, solution, and simulation environment for enterprises to reduce risks for their VMI supply chain operations.
Keywords
vendor-managed inventory; decision support system; supply chain management; inventory/routing problems; computer simulation;
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Times Cited By KSCI : 1  (Citation Analysis)
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