Vendor managed inventory and its effect in the supply chain

Authors:
Sungwon Jung;Tai-Woo Chang;Eoksu Sim;Jinwoo Park
Affiliations:
Department of Industrial Engineering, Seoul National University, Seoul, S. Korea;Postal Technology Research Center, ETRI, S. Korea;Department of Industrial Engineering, Seoul National University, Seoul, S. Korea;Department of Industrial Engineering, Seoul National University, Seoul, S. Korea
Venue:
AsiaSim'04 Proceedings of the Third Asian simulation conference on Systems Modeling and Simulation: theory and applications
Year:
2004

Citing 5
Cited 3

Echelon reorder points, installation reorder points, and the value of centralized demand information

Management Science
A Multi-Echelon Inventory System with Information Exchange

Management Science
Information Flows in Capacitated Supply Chains with Fixed Ordering Costs

Management Science
The Value of Information Sharing in a Two-Level Supply Chain

Management Science
Supply Chain Inventory Management and the Value of Shared Information

Management Science

Case-based myopic reinforcement learning for satisfying target service level in supply chain

Expert Systems with Applications: An International Journal
The application of discrete event simulation and system dynamics in the logistics and supply chain context

Decision Support Systems
Value Creation in Electronic Supply Chains by Adoption of a Vendor Managed Inventory System

International Journal of Interdisciplinary Telecommunications and Networking

Quantified Score

Hi-index	0.00

Visualization

Abstract

Many companies have tried to get the competitive advantage through the effective supply chain management. To manage the supply chain effectively, many strategy based on the shared information among the entities in supply chain has been developed. Although the supply chain members agree with the idea that the policy based on the shared information will be beneficial to improve the effective supply chain, they are reluctant to share their information owing to some barriers such as the expensive technology investment, personnel training and lack of mutual trust. The benefit from the sharing information may vary according to the supply chain environment. According to an environment of supply chain, the profit gained through the policy based on the shared information may be too low to collect the invested amounts or high enough to give proper compensation. To gain this insight, we analyze the impact of the Vendor Managed Inventory, which is one of the popular supply chain strategy based on the share information, in various supply chain environment. The simulation experiment shows in which environment their benefit from the policy based on the shared information will be increased (or decreased).