Designing And Managing The Supply Chain
Designing And Managing The Supply Chain
Supply chain integration in vendor-managed inventory
Decision Support Systems
Analyzing the evolutionary stability of the vendor-managed inventory supply chains
Computers and Industrial Engineering
A production/remanufacturing inventory model with price and quality dependant return rate
Computers and Industrial Engineering
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In this paper, we develop integrated retail shelf space allocation and inventory models for a single item with a stock dependent demand. The integrated models are developed for a supply chain operating under vendor-managed inventory (VMI) and consignment stock (CS) agreement. More precisely, the supplier is responsible for initiating orders on behalf of the retailer and decides about the size of each order, the quantity to be displayed on the shelves, and the reorder point. In addition, the supplier owns the stock at the retailer's premises until it is sold. We develop mathematical models to assess the benefits accrued by both parties as a result of the adoption of VMI-CS partnership. Results from the numerical experimental study show that such partnership is more attractive to all supply chain members when the retailer provides a flexible display capacity. Moreover, the supplier can use his/her selling price and the maximum allocated shelf space as negotiation means to benefit from the partnership.