• IE interfaces
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• v.13 no.3
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• pp.431-437
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• 2000

This paper refers to the flow of products from supplier to discount retailers(DRs). Discount retailers prefer frequent delivery of small amount because of limited storage space, while suppliers prefer less frequent delivery of larger amount in order to save transportation cost. In this paper we propose a heuristic algorithm to determine the amount of order and the frequency of delivery which decreases the expected length of stockout. We also evaluate various order policies for Vendor Managed Inventory(VMI) system using simulation with real data.

• Journal of Distribution Science
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• v.15 no.8
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• pp.15-28
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• 2017

Purpose - Many researchers analyze VMI as a supply chain collaboration program to reveal its true value. Most of them focus on the dyadic relationship in two stage supply chain systems. This study examines the effect of VMI when it is applied to the different parts of three stage supply chain systems. Research design, data, and methodology - Based on three stage supply chain, this study compares three different systems including full VMI, partial VMI, and non-VMI by using mathematical models. The performances of three systems are compared with the numerical examples of the proposed supply chain models. Results - The numerical examples reveal that full VMI where the manufacturer controls inventories at all stages outperforms any other systems in terms of the system profit and enables all individual members to gain greater profits than non-VMI. Meanwhile, under partial VMI where VMI is implemented between the wholesaler and retailer, only these two members improve their performances and the manufacturer who does not belong to VMI makes less profit than even under non-VMI. This study also examines the impact of market size and profit margin on the system performance. Conclusions - The result of this study supports the common belief that VMI secures the best result when it is applied to the entire supply chain system. The additional findings from the numerical analysis are discussed.

• Proceedings of the Safety Management and Science Conference
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• 2005.05a
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• pp.417-428
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• 2005

Recently, Vendor Managed Inventory(VMI) is commonly recognized as one of the supply chain application that delivers clear value to the sectors of electic& electronic Components. VMI is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. VMI is providing the benefits of smoother demand, lower inventories and reduced costs. This case study focused on Improvement of Inventory Efficiency by VMI. The results indicated that VMI allowed the company to serve its customers more surely and efficiently.

• 한국디지털정책학회:학술대회논문집
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• 2005.11a
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• pp.435-442
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• 2005

VMI의 최종목표는 공급자가 수입을 유지하는 동안 최종사용자에게 있어서는 비용을 줄이고 서비스를 향상시켜주는 것이다. VMI는 소매상인과 공급자가 각 비즈니스의 계획, 예측, 보급과정에서 협력하는 것을 허용하며, 각 당사자에게 다른 비즈니스 데이터의 투명한 관점을 제공한다. 또한 VMI는 더욱 정확한 기획, 증가된 판매, 감소된 재고품과 빠른 주식의 회전결과를 처리한다. 본 연구에서는 현재 기업에서 많이 도입되고 있는 SCM 영역에서 주요한 이슈로 부각되고 있는 VMI 관련 기술 및 구축현황을 조사하였으며, 아울러 인터넷쇼핑몰 환경에 맞는 VMI 아키텍쳐의 개발에 대한 연구를 제시한다.

• Journal of Digital Contents Society
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• v.9 no.2
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• pp.295-303
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• 2008

With universality of e-commerce through internet, smaller online shopping malls are increased. A Smaller online shopping mall by nature lacks an extra space to load many inventory quantities. Therefore, it is difficult to response immediately with client request with traditional inventory management method. VMI has a character that supplier can control volume of inventory according to sales of seller. This paper proposes SOHO-VMI that is applied VMI into smaller online shopping mall. Proposed SOHO-VMI supports M $\times$ N structure can interact with multiple suppliers and sellers. And it uses XML/EDI for interaction with EDI documents use to legacy system. Also, This paper proposes logistics statistic prediction algorithm can adjust production and distribution volumes to supplier considering seller's product distribution information and seasonal factor.

• The Journal of Society for e-Business Studies
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• v.7 no.2
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• pp.129-141
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• 2002

This paper deals with the collaborative procurement process in a two-echelon supply chain that a manufacturing company and a contractor are connected through the information system. The real time information about inventory and production processing becomes available through this information system. We raise two issues related to the collaborative procurement process. First, we propose a VMI(Vendor-Managed Inventory) type of the procurement policy which focuses on the cost minimization for the total supply chain rather than individual companies. Second, based on the simulation study, we demonstrate that a collaborative procurement process is more cost-effective over classical procurement processes such as (Q, r). The result obtained in this paper can be applied to the quantitative evaluation of the cost saving effect when companies build the information sharing based, collaborative procurement system.

• Journal of Distribution Science
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• v.18 no.1
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• pp.85-94
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• 2020

Purpose: This study investigates the influence of VMI on the supply chain performance over time. By examining each supply chain member's ongoing performance, this study figures out how VMI allows the vendor to overcome the initial loss and eventually provides the benefit to every supply chain member. Research design, data, and methodology: The proposed mathematical model describes the supply chain system where a manufacturer and a retailer make the operational decisions to maximize their own profits. By using the numerical examples with arbitrary data, VMI and non-VMI are compared in terms of their profit changes over time. Results: The numerical analysis shows that VMI results in greater overall profits for both manufacturer and retailer than non-VMI, while the manufacturer make a loss in the early stage of VMI implementation. This study also examines the impacts of certain conditional factors on the performance of VMI. Conclusions: This study supports the idea that VMI leads to manufacturer's initial loss but it brings greater profits to both manufacturer and retailer than non-VMI after all. In addition, the result of this study provides the managerial implications about the particular condition that allows VMI to achieve a significant financial performance improvement over non-VMI.

• Industrial Engineering and Management Systems
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• v.15 no.4
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• pp.385-395
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• 2016

Game theory is a powerful tool for analyzing the Supply chain (SC) with different conflicting elements. Among them, the Stackelberg game is the one in which a player as leader has more power than the other ones as followers. Since in many SC systems one element has, in essence, more power than the others; the Stackelberg game has found many applications in SC studies. In this paper, we apply the Stackelberg game-theoretic approach and the corresponding equilibrium point to formulate and analyze a two echelon VMI SC. Comprehensive computational results on an experimental case are conducted to numerically analyze the performance of VMI system against three groups of critical parameters. Moreover, a critical comparison demonstrates the poorer performance of decentralized VMI system than centralized one. This naturally necessitates designing proper contracts between VMI partners in order to more effectively implement the realistic decentralized system.

• IE interfaces
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• v.21 no.2
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• pp.161-169
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• 2008

Normally, suppliers have to decide on what, how much, and when to replenish stocks of goods based on a data flow generated by a vendor managed inventory(VMI) system. But information from supply chain is often misleading. It is common for such data to be distorted by a lack of coordination and synchronization across several business entities managing different supply chain operations. This phenomenon is called the 'bullwhip effect(BwE)'. Many researchers, working over many years, have studied the reasons for the BwE. They have proposed various remedies, but this phenomenon persists. Though overlooked in previous research, this paper reveals that the 'lot size' of a supply chain of distribution is indeed the main cause of the BwE. In addition, some problems in the existing methods of measuring the BwE are identified and a revised much improved method of measurement is suggested.

• Journal of Distribution Science
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• v.13 no.3
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• pp.31-39
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• 2015

Purpose - Due to its potential to improve supply chain operations, supply chain collaboration has attracted significant attention from both academics and practitioners. This study focuses on VMI, in collaboration with consignment, and examines its impact on supply chain performance. Research design, data, and methodology - This study employs the analysis of mathematical models, formulated based on the proposed supply chain framework. Using numerical examples, it evaluates the performance of three supply chain systems: one including VMI and consignment, a consignment-only system, and a traditional system. Results - The combination of VMI and consignment produces greater supply chain benefits than the consignment-only and traditional systems. Whereas only the performance of the buyer improves with the consignment-only system, the system with VMI and consignment is beneficial to both the buyer and supplier. Conclusions - The results of this study reveal that the inclusion of the additional collaborative function of VMI makes consignment a better supply chain collaboration program. Future studies should examine issues regarding the testing of diverse collaboration programs and the building of a firm theoretical background.