• Journal of Korean Institute of Industrial Engineers
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• v.32 no.4
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• pp.382-392
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• 2006

Vendor-managed inventory policy(VMIP) is a supply-chain initiative where the supplier is authorized to manage inventories of items at retail locations. In VMIP, the supplier monitors sales and stock information at retail locations and makes decisions of inventory replenishment and transportation simultaneously. VMIP has been known as an effective supply chain strategy that can realize many of benefits obtainable only in a fully integrated supply chain. However, VMIP does not always lead to lower the supply chain cost. It sometimes generates the total supply chain cost higher than the traditional retailer-managed inventory policy (RMIP). In this paper, we perform a comparison study on RMIP and VMIP in the retail supply chain which consists of a single supplier and a number of retailers. We formulate mixed integer programming models for both RMIP and VMIP with vehicle routing problems and perform computational experiments on various test problems. Furthermore, we derive the conditions which guarantee the dominant position for VMIP with respect to total supply chain cost in the simple retail supply chain.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.15 no.26
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• pp.99-109
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• 1992

This paper presents a cost model of the system which is managed under a continuous review (Q,r) policy at each retailer and peridic review (R,T) policy at the central warehouse. An iterative procedure is performed to find the optimal or near-optimal' solution for the policy parameters at each retailers and a central warehouse in this study.

• Journal of Digital Convergence
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• v.13 no.9
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• pp.77-87
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• 2015

Vendor Managed Inventory(VMI) is a distribution channel system where the inventory at the retailer is monitored and managed by the manufacturer or vendor. By pushing the decision making responsibility further up the supply chain and centralizing the replenishment decision, the vendor can help the entire supply chain be more competitive. The purpose of this research is to explore the factors influencing the adoption of VMI by Korean manufacturers. This research proposes the IT readiness, operating cost, and information sharing as antecedents of burden for VMI, and collected the survey responses from the small-to-medium manufacturers. The statistical results indicate that only the operating cost has a significant impact on the adoption of VMI. However it has also been found that the IT readiness and information sharing have a significant effect on the operating cost. Thus indirectly influence the adoption of VMI. As a conclusion, the academic and practical implications of these findings are discussed.